LLED has purchased a new chip making machine for $1,500,000 with a salvage value of $100,000...

 

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LLED has purchased a new chip making machine for $1,500,000 with a salvage value of $100,000 in 10 years. The LLED company is trying to determine the best method of depreciation. Create a table and calculate the deprecation amount for each year using straight line, double declining balance, and MACRS (10 yr property class). For SL and DDB we will not depreciate below the salvage value. Using a MARR of 10% calculate the present worth of the depreciation deductions. Which is the preferred method of depreciation for LLED? LLED has purchased a new chip making machine for $1,500,000 with a salvage value of $100,000 in 10 years. The LLED company is trying to determine the best method of depreciation. Create a table and calculate the deprecation amount for each year using straight line, double declining balance, and MACRS (10 yr property class). For SL and DDB we will not depreciate below the salvage value. Using a MARR of 10% calculate the present worth of the depreciation deductions. Which is the preferred method of depreciation for LLED?

Answer rating: 100% (QA)

Step 1 Straightline method In straightline method the depreciable cost of the asset is ... View the full answer