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1. What is the amount of the depreciation expense for the four year for this company if it just purchased some fixed assets classified as 5-year property for MACRS? The assets cost $15,000.

Year 1- 20% Year 2- 32% Year 3- 19.20% Year 4- 11.52% Year 5- 11.52% Year 6- 5.76%

2. List and briefly discuss the advantages and disadvantages of the internal rate of return (IRR) rule.

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