Under the straight-line and double-declining balance method

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Assume that a firm buys a depreciable asset for $6 million and its salvage value is $0 after a depreciable life of 12 years. Using the SLN and DDB functions, determine the depreciation expense for each of the 12 years under the straight-line (SLN) and double-declining balance (DDB) method.

Then, Use the NPV function to discount each of the columns of depreciation expense, assuming a discount rate of 9%. Place each of the two numbers at the bottom of its respective column.

Reference no: EM13947581

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