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Consider a 6500 piece of machinery, with a 5 year depreciable life and an estimated 1200 salvage value. The projected utilization of the machinery when it was purchased, and its actual production to date as follows:
Year12345
Projected Production (tons)35004000450050005500
Actual Production (tons)30005000N/AN/AN/A
Compute the machinery depreciation schedule by each of the following methods:A) Straight-LineB) Sum-of-years'-digitsC)Double Declining BalanceD)Unit of production (for first 2 years only)E) Modified accelerated cost recovery system
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Construct a table to report the regressions above, which includes the estimates, the standard errors, and adjusted R-square and find the estimated coefficient of ln(Y earsSchool) in Regression B. What is the interpretation of it?
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