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A Lorry is depreciated over a period of 7 years, with an initial cost of £65,000 and an estimated scrap value after 7 years of £2,000.The depreciation is calculated separately using two methods, the equal installment method and the diminishing balance method.
Calculate:
(a) using the equal installment method, the percentage of the initial cost to be written off each year.
(b) using the diminishing balance method, the rate of depreciation.
(c) the year in which the two methods give amounts of depreciation that are closest to each other.show your working.
Suppose the spot exchange rate for the canadian for the canadian dollar is Can 1.02 and the six month forard rate is Can 1.03.
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Compare the calculated financial ratios against the industry benchmarks for the industry of your assigned company.
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