Construct a choice table for interest rates

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1) You are considering two kinds of equipment for your company, alternative A with initial cost of $700,000, salvage value of $175,000 and annual cost of $40,000. Alternative B has an initial cost of $500,000, salvage value of $125,000 and annual cost of $110,000. Both alternatives have useful lives of 5 years. Construct a choice table for interest rates from 0% to 100%. Your company wants a 12% rate of return on the investment. Which alternative should be chosen?

2) Computer the depreciation schedule using the sum-of-year-digits method for the following: Office furniture that costs $50,000 and has zero salvage value at the end of its depreciable life in 10 years.

Reference no: EM13685980

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Construct a choice table for interest rates : You are considering two kinds of equipment for your company, alternative A with initial cost of $700,000, salvage value of $175,000 and annual cost of $40,000. Alternative B has an initial cost of $500,000, salvage value of $125,000 and annual cost o..
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