Engineering Economy class

(Ex2/q8/a)

8. (30 pts. total) A large, profitable corporation with net income exceed $20 million is considering the installation of a new machine that cost $100,000 with the expected salvage value of $20,000 after 4 years of useful life. a) Determine the depreciation "dt" and the book value "BV" for the first two years of depreciation methods in the table. Assume 3-yr property class for MACRS depreciation. (15 pts) MACRS dt SOYD dt 150% DB dt SL Year BV dt BV BV BV $100,000 $100,000 $100,000