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What will book value be after eight years

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Question 1: Purchase a piece of machinery for my business for $96 000. Wish to compare straight line and diminishing value depreciation to determine which will give the higher book value after 8 years.

a) If it has a scrap value of $20 000 and a useful life of 12 years. What will its book value be after 8 years?

b) If it depreciates at 12% per annum, what will its book value be after 8 years?

c) Which method gives me the higher book value after 10 years?

Question 2: Top of the range running shoes cost $215 each. If they cost the store $95 each to make, what is the percentage markup?

Reference no: EM132623505

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