We are required to use macrs schedule over 7 years, but the project ends at year 4. Note, we need to calculate a book value at year 4.

Open a discussion on how to treat the NWC, charity donation in the project work. The facts of the project indicate that the mine requires a 5% of sale investment on networking capital. The nwc will be build up in the year prior to sales. However, it did not state whether the 5% requirement on sale is per year basis or one time initial investment requirement on nwc.

Answer rating: 100% (QA)

The book value is calculated is calculated at the year when the project is going to end ie year 4 ... View the full answer