Question: Please answer all 3 Question 3 The following information is known: Cost $ 1,800 Useful Life $ 5yr. Salvage Value $500 1. Calculate the straight-line
Please answer all 3



Question 3 The following information is known: Cost $ 1,800 Useful Life $ 5yr. Salvage Value $500 1. Calculate the straight-line depreciation for each year of the asset's useful life. 1. What is the MACRS Depreciation for the same asset if it is a 3 year property? 1. What is the DDB Depreciation for the same asset each of the years of the asset's useful life? Yr. S.L. MACRS DDB Two machines are being considered for purchase. Assuming 6% interest, which machine should be bought? Use benefit to cost ratio analysis. Machine Y $6400 Initial Cost Uniform Annual Benefit Salvage Value Machine X $2,800 $ 390 $ 500 6 $ 790 $ 700 Useful Life in years EUAC (x) EUAB (x): EUAC (y): EUAB (y): Bestis: 500 9% Solve for F 200 300 Note Answer may be negative
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