Henry has an assignment from his boss at Czech Glass and Wood Sculpting to evaluate depreciation methods for writing off the $200,000 first cost of a newly acquired Trotec CO2 laser system for engraving and cutting. Productive life is 8 years and salvage is estimated at $10,000. Henry wants to compare the PW of depreciation at i = 10% per year for DDB-to-SL switching with MACRS for n = 7 years to determine which is the preferred method.
Required:
Perform the analysis using a table or a spreadsheet, as requested by the instructor.
Answers: 2
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