Which is the preferred method

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1. Use the Web to compare international depreciation methods with SL, DB, and the U.S.-imposed MACRS you have learned here. (Hint: Perfor- ming a search using "Depreciation methods in (country name)" is a good start.)

2. Henry has an assignment from his boss at Czech Glass and Wood Sculpting to evaluate depreciation methods for writing off the $200,000 first cost of a newly acquired Trotec CO2 laser system for engraving and cutting. Productive life is 8 years and salvage is estimated at $10,000. Compare the PW of depreciation at 10% per year for DDB-to-SL switching with that for MACRS with n = 7 years. Which is the preferred method?

Reference no: EM131006406

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