Ultra-clean special handling devices used in the filling process for baby-food manufacture are placed into use at
Question:
Ultra-clean special handling devices used in the filling process for baby-food manufacture are placed into use at a cost of $850,000. These devices are expected to be useful for 4 years with a salvage value of nothing at that time.
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 11 percent):
a. MACRS-GDS as is proper over its property class depreciation life (9.6.2)
b. 200 percent DBH with deductions in years 1 through 4 (9.6.2)
c. DDB taking a full deduction in the first year, with the last deduction in year 3 (9.4)
d. DDB switching to straight line, taking a full deduction in the first year, with the last deduction in year 3 (9.5)
e. SLN taking a full deduction in the first year, with the last deduction in year 3 (9.3)
f. SLH with deductions in years 1 through 4 (9.6.1)
g. SYD with the last deduction in year 3 (9.A)
Step by Step Answer:
Principles Of Engineering Economic Analysis
ISBN: 9781118163832
6th Edition
Authors: John A. White, Kenneth E. Case, David B. Pratt