Question: make sure to not use excel and use hand written formulas please !!! Problem 6 (10 points) Baseline, a nationwide franchise for environmental engineering services,
Problem 6 (10 points) Baseline, a nationwide franchise for environmental engineering services, has acquired new workstations and 3-D modeling software for its 100 affiliate sites at a cost of $4000 per site. The estimated salvage for each system after 5 years is expected to be 20% of the first cost. The franchise manager in the home office in San Francisco wants to compare the depreciation for a 5-year MACRS method (tax depreciation) with that for a 5-year 175% DB method (book depreciation) (a) Determine which depreciation method offers the larger total depreciation for the first 2 years. (b) Determine book value for each method at the end of year 4. (c) Determine book value for each method at the end of year 6
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