A public utility purchases a gas-powered electric generator as part of an expansion program. It is expected

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A public utility purchases a gas-powered electric generator as part of an expansion program. It is expected to be useful, with proper maintenance, for an estimated 30 years. The cost is $17 million, installed. The salvage value at the end of 30 years is expected to be 10 percent of the original cost.

a. What is the MACRS-GDS property class?

b. Determine the depreciation deduction and the unrecovered investment for years 1, 5, and the last depreciable year of the generator.

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Principles Of Engineering Economic Analysis

ISBN: 9781118163832

6th Edition

Authors: John A. White, Kenneth E. Case, David B. Pratt

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