ABC Ltd. purchased a new 3-D printer for $500,000 at the beginning of year 1. Although this printer is expected to last for 10 years, ABC knows the technology will become old quickly, and so they plan to replace this printer in 4 years. At that point, ABC would be able to sell the printer for $20,000. Calculate the net book value of the printer when at the end of year 2 using the declining balance method with a rate of 50%.

Wisconsin snowmobile corp. is considering a switch to level production. cost efficiencies would occur under level production, and after tax costs would decline by $36,000, but inventory would increase by $300,000. wisconsin snowmobile would have to finance the extra inventory at a cost of 13.5 percent.a. determine the extra cost or savings of switching over to level production. should the company go ahead and switch to level production? b how low would interest rates need to fall before level production would be feasible?