type answer

no fluff

BA level

E007 9- The hospital Executive would like to invest $4M to procure the latest piece of equipment in medical technology. Leadership believes this equipment will revolutionize and enhance patient care. The analyst you replaced have used straight line depreciation method. You believe the hospital should depreciate the asset faster. Explain your rationale. The CEO believes straight-line depreciation method is a good way to increase depreciation expenses and reduce tax liability in the first three years. You disagree and decide to use MACRS - Depreciation method to prove your point. Compute total depreciation for the first 3 year under SL & MACRS. (20points) Asset : Total Cost $4,000,000.00 IRS- Classification 7 years Residual Value 200,000.00