Calculate the depreciation schedule for an asset

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1. What method of depreciation would you prefer, MACRS or straight-line, if your objective is to maximize the present value of your firm's cash flows?

2. Using the following methods, calculate the depreciation schedule for an asset that has a $15,000 original cost, an expected useful life of five years, and no expected salvage value:

a. Straight-line depreciation

b. Sum-of-the-years'-digits depreciation.

Reference no: EM131338269

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