a firm is considering investing in a new piece of equipment. the equipment would cost 500,000 and wold have shipping and instalation costs of 125,000. if purchased, the machine would have an estimated useful life of 5 years and would be depreciated via a 5 year MACRS schedule (20% 32% 19.2% 11.5% 11.5% 11.5% 5.8%) adoption of the project would also require an increase in working capital of 50,000. if the new equipment is purchased, an old piece of equipment ( which is still usable for 5 more years) could be sold for 30,000. the old machine has been depreciated on a strait line basis and currently has a book value of ). the machine would generate annual incremental revenues of 250,000 and annual incremental expenses of 50,000. it is estimated that the machine can be sold as scrap at the end of its useful life for 80,000. the required return on projects of this nature is 14% and the firms marginal tax rate is 40%

what us the amount of depriciation in the third year?

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To calculate the depreciation in the third year using the Modified Accelerated Cost Recov... View the full answer