Calculate the present worth of the depreciation

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A construction company is purchasing a new Tractor for over the road use. The IRS classifies this as 3-year property. The truck costs $343000. a) Determine the depreciation allowance for each year using SLN method.

Year 1 = _____

Year 2 = _____

Year 3 = _____

Year 4 = _____

b) Determine the depreciation allowance for each year using DDB method.

Year 1 = _____

Year 2 = _____

Year 3 = _____

Year 4 = _____

c) Determine the depreciation allowance for each year using MACRS.

Year 1 = _____

Year 2 = _____

Year 3 = _____

Year 4 = _____

d) Using a 10% MARR calculate the present worth of the depreciation for each of the 3 methods above.

PWa = _____

PWb = _____

PWc = _____

Reference no: EM132048692

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