Question: You have been asked by your construction client to prepare a cost model for the annual depreciation of a crane costing $ 2 5 0

You have been asked by your construction client to prepare a cost model for the annual depreciation of a crane costing $250,000. The productive life of the crane is 10 years,
The client would like to see a comparison of the cash flows using the ATO Prime Cost Method
(Straight line constant $ write-off) and ATO Diminishing Value Method (constant % write-off).
Your reading of the ATO Guide on depreciation, confirmed by your accounting colleagues, has determined that for a 10 year life, the ATO allowed write-off is 10% for constant $ write-off and 20% for constant % write-off.

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