iPad 10:07 AM 75%-, Done EXAM #4 part A.docx IV 355 NAME: EXAM #4PARTA NOVEMBER

Question

iPad 10:07 AM 75%-, Done EXAM #4 part A.docx IV 355 NAME: EXAM #4PARTA NOVEMBER 15TH, 2017 1. JSU has decided to improve the Engineering Department. The improvement base costs are attached to your J-Number with the life and salvage values indicated. The president asked you, as the design engineer, to analyze and compare the difference between STRAIGHTLINE, MACRS and DDB in a tabular form using Excel spreadsheet. You are to complete the analysis, print out the results and bring it to class (to be submitted) to complete problems 2-4 of Part "B" of the exam. (50pts)

Explanation / Answer

Base B = 405000

Depreciation rate S = 3%

Life yr = 10

Salvage value of Base is

S = B(1-S)^y

= 405000(1-0.03)^10

= 298656.7714

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