Computer-based central office electronic switching for telephone and data use has an installed cost of ($300,000.) It

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Computer-based central office electronic switching for telephone and data use has an installed cost of \($300,000.\) It is in the MACRS-GDS 5-year property class. Upon disposal, the equipment will be given away in return for dismantling and moving it, resulting in a net \($0\) salvage. Compare MACRS to traditional depreciation methods by calculating yearly depreciation allowances, present worth of the depreciation allowances, and book value for each year using each of the following (MARR is 10 percent):

a. MACRS-GDS as is proper over 6 years (9.6.2)

b. 200 percent DBH with deductions in years 1 through 6 (9.6.2)

c. DDB taking a full deduction in the first year, with the last deduction in year 5 (9.4)

d. DDB switching to straight line, taking a full deduction in the first year, with the last deduction in year 5 (9.5)

e. SLN taking a full deduction in the first year, with the last deduction in year 5 (9.3)

f. SLH with deductions in years 1 through 6 (9.6.1)

g. SYD with the last deduction in year 5 (9.A)

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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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