Calculate the PW of the depreciation deductions

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Question - The XYZ Block Company purchased a new office computer and other depreciable computer hardware for $4800. During the third year, the computer is declared obsolete and is donated to the local community college. Using an interest rate of 15%, calculate the PW of the depreciation deductions. Assume that no salvage value was initially declared and that the machine was expected to last 5 years.

(a) Straight-line depreciation.

(b) Sum-of-the-years'-digits depreciation.

(c) MACRS depreciation.

Reference no: EM132165525

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