Which methods of depreciation would be preferable

Reference no: EM132165512

Question: For the data in Problem, if money is worth 10%, which one of the following three methods of depreciation would be preferable?

Problem: A profitable company making earthmoving equipment is considering an investment of $100,000 on equipment that will have a 5-year useful life and a $20,000 salvage value. Use a spreadsheet function to compute the MACRS depreciation schedule. Show the total depreciation taken (=sum( )) as well as the PW of the depreciation charges discounted at the MARR%.

(a) Straight-line method

(b) Double declining balance method

Reference no: EM132165512

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