Present Value: Present value explains that how much a future sum of money is value today. Straight line method is used to calculate depreciation . It is the easiest method of calculating deprecation. It is calculated by the following formula. Straight Line Depreciation = ( Purchase Price of Asset - Approximate Salvage Value ) Estimated Useful Life of Asset The project net value.

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Chapter 14, Problem 1E

To determine

Present Value:

Present value explains that how much a future sum of money is value today.

Straight line method is used to calculate depreciation. It is the easiest method of calculating deprecation. It is calculated by the following formula.

Straight Line Depreciation=(Purchase Price of Asset-Approximate Salvage Value)Estimated Useful Life of Asset

The project net value.

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