An engineer with Accenture Middle East BV in Dubai was asked by her client to help him

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An engineer with Accenture Middle East BV in Dubai was asked by her client to help him understand the difference between 150% DB and DDB depreciation.

Answer these questions if B = $180,000, n = 12 years, and S = $30,000.

(a) What are the book values after 12 years for both methods?

(b) How do the estimated salvage and these book values compare in value after 12 years?

(c) Which of the two methods, when calculated correctly considering S = $30,000, writes off more of the first cost over 12 years?


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Engineering economy

ISBN: 978-0073376301

7th Edition

Authors: Leland Blank, Anthony Tarquin

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