For each problem, solve the analysis with the provided equations in Table 4-3 as well as using the

tabulated factors in Appendix 4-1.

1.The chemistry department purchased centrifuges for $20,000. If the device is treated as 7-year property,

create the depreciation schedule for this equipment.

2.The Smith Company uses a 10 hp motor 16 hours per day, 5 days per week, 50 weeks per year in its

flexible work cell. This motor is 85% efficient, and it is near the end of its useful life. The company is

considering buying a new high efficiency motor (91% efficient) to replace the old one instead of buying a

standard efficiency motor (86.4% efficient). The high efficiency motor costs $70 more than the standard

model, and should have a 15 year life. The company pays $7.00/kW per month and $0.06/kWh. The

company has set a discount rate of 10% for their use in comparing projects. Determine the SPP, ROI and

BCR for this project. The company's discount rate is 10%.