QUESTION 9 [3 marks] What is the difference between straight line depreciation and reducing balance depreciation for an asset with an economic life of N years? If you had a depreciable asset and you could choose which method of depreciation to use for tax purposes, which would you choose and why? QUESTION 10 [3 marks] We are trying to do a valuation of a 4 year bond with a face value of 100, a coupon rate of 4% p.a. effective, and a yield to maturity of 4% p.a. effective. We would like to use the Excel PV function to find the value. This table shows four attempts at this calculation. The third and fourth arguments to the function are either positive or negative, with different signs in different attempts. The first column shows the Excel function and the second column shows the numeric result Excel function Numeric Result =PV(4%,4,-0.04*100,-100) $100.00 =PV(4%,4,-0.04*100,100) -$70.96 =PV(4%,4,0.04*100,-100) $70.96 =PV(4%,4,0.04*100,100) $100.00 Why do we get different values for the result of the PV function here? Which is the correct value? Where does the result of 70.96 come from