Making earthmoving equipment is considering investment

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Reference no: EM13771643

A profitable company making earthmoving equipment is considering an investment of $150,000 on equipment that will have a 5 year useful life and a $50,000 salvage value. Use a spreadsheet function to compute the MACRS depreciation schedule. Show the depreciation taken (=sum ()) as well as the PW of the depreciation charges discounted at the MARR%. If money is worth 10%m which one of the following three methods of depreciation would be preferable? (a) Straight line method), (b) double declining balance method, (c) MACRS method.

Reference no: EM13771643

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