Computations of the difference in present worths

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Some equipment that costs $1000 has a 5-year depreciable life and an estimated $50 salvage value at the end of that time. You have been assigned to determine whether to use straight-line or SOYD depreciation. If a 10% interest rate is appropriate, which is the preferred depreciation method for this profitable corporation? Use a spreadsheet to show your computations of the difference in present worths.

Reference no: EM131809799

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