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Loretta Livermore Labs purchased R&D equipment costing $200,000. The interest rate is 5%, salvage value is $20,000, and expected life is 10 yeasts. Compute the PW of the depreciation deductions assuming: (a) Straight-line depreciation, (b) Sum of Years Digits depreciation, (c) MACRS depreciation, and (d) Double Declining balance depreciation.

Financial Management, Finance

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