What is the pdv of the depreciation allowance

Assignment Help Financial Management

Reference no: EM131200297

You are a manager of a company that just spent $80,000 to purchase a piece of equipment that is expected to function for six years. If you can borrow money at 7%, what is the PDV of the depreciation allowance under the following circumstances?

a. You can expense the investment.

b. You depreciate using straight-line depreciation methods.

c. You depreciate over four years using accelerated straight-line depreciation methods.

d. You depreciate using an augmented accelerated method in which half of the asset value is depreciated immediately and the other half is straight-line depreciated over the remaining three years.

Reference no: EM131200297

Questions Cloud

What is the color code of the equivalent resistance : What is the color code of the equivalent resistance?

What command-line utility : When running a scan on your computer you find that a session has been established with a host at the address 208.85.40.44:80. Which protocol is in use for this session? What command-line utility might you use to use to find out who the host is?

Express this as a percentage of the output voltage : Also, the series resistance is 200 Ω. If the fluctuations in the voltage source are in the range ±5.0 V, estimate the voltage fluctuations in the output of the regulator. Express this as a percentage of the output voltage.

Define information security standards : A number of organizations exist to define information security standards. Explain the importance of standards organizations with regard to both information systems and information systems security. Provide a rationale for your response.

What is the pdv of the depreciation allowance : If you can borrow money at 7%, what is the PDV of the depreciation allowance under the given circumstances?- You can expense the investment.

Why are some countries today much poorer than other country : Why are some countries today much poorer than other countries? Are today's poor countries destined to always be poorer than today's rich countries? If so, explain why.

Discuss the cause and effect variables that each theory : How would a Keynesian, Monetarist, and Neoclassical Theorist would each propose promoting economic growth to our economy based on it's current state? Discuss the cause and effect variables that each theory uses to explain business cycles.

Describe common challenges that you will find : Product evaluation is an important step to ensure that a product will meet the quality, features, and overall design that is acceptable to the consumer. Imagine that you are an evaluator for a new product. Describe common challenges that you will ..

Monetary aggregates currently published by federal reserve : Describe the current state of the U.S. economy using the two monetary aggregates (M1 and M2) currently published by the Federal Reserve. In your description, illustrate the trends of the two monetary aggregates. Evaluate what the Federal Reserve Bank..

User Account

All Pages