Question a bowling alley costs 500000 and has a useful life, Ask an Expert

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Question: A bowling alley costs $500,000 and has a useful life of 10 years. Its estimated MV at the end of year 10 is $20,000. Create a spreadsheet that calculates the depreciation for years 1-10 using

(i) the SL method,

(ii) the 200% DB method, and

(iii) the MACRS method (GDS class life = 10 years).

For each method, compute the PW of the depreciation deductions (at EOY 0). The MARR is 10% per year. If a large PW is desirable, what do you conclude regarding which method is preferred?

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Category:- Engineering Mathematics
Reference No.:- M92315126

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