Cases in Engi Economy - 26

Cases in Engi Economy - 26 - Case 26 Molehill &...

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Case 26 Molehill & Mountain Movers Cathy has one year left before she completes her degree in industrial engineering. She is spending this summer working for her family's firm, MMM (Molehill & Mountain Movers). MMM nrns a fleet of heavy construction equipment and sells gravel for roadwork from its pit. They are opening a new section of the pit, and they must choose between conveyor and front-end loader systems for loading the trucks. In the past they have used front-end loaders. The firm's CPA has asked Cathy to analyze the after-tax cost of the two choices. Her task is complicated by uncertainty over the depreciation portion of the tax code. It is up for revision once again (the prolonged business boom has raised the pressure for increasing business taxes). Thus the system may be depreciated under (a) straight line, (b) sum-of-the-year's digits (SOYD), (c) double declining balance, or (d) modified accelerated cost-recovery system (MACRS).
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Cases in Engi Economy - 26 - Case 26 Molehill &...

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