Question: 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

 Computer-based central office electronic switching for telephone and data use hasan installed cost of $300,000. It is in the MACRS-GDS 5-year property

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 \$O 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%. DDB taking a full deduction in the 1st year, with the last deduction in year 5. Present Worth of Depreciation Allowances: \$

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