Quiz5_Spring08 - -s D ; : ~ v ' \ SL , .,. .--1: o I 2 . 6...

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~ * \ An S v J er : Th e .. To + C\ . \ +a . ~e S \ bo t - » c- . { ~ :\I I ( p )~O O bv lk CHEE 5369 / 6369 \ + - ~ f \ ) e - + P( e : : . e~ - r \ ) ~ \ u t ot Quiz # 5 (Closed book) \ ~~ D D B - ~ L ~W ;+ ~~ MLtt AJ Tuesday February 19, 2008 1 1 s . : \\ \ /\ ( o S A)I~ IO u J E r th t f .. t \ ; - \ - t 5 L f V \ e . f ' h o e \ .__ __ - -.-- - ------ - - - -- - -_._-- - -- An asset with a first cost of $45,000 has a life of 5 years, a salvage v alue of $3000, and an anticipated CFBT of $15,000 per year. Using an effective tax rate of 50% and . 18% annual interest rate, determine the difference in total taxes, and in the rese " iit worth f i f ta when - - - . . -,=o= . ~ ..' ( . . - -~. ., depreciation is calculated using the SL method versus using a DDB - SL itch method. Which is lower? - \ j : : . $4S ; D oa ef ( ) T = - j\ \ OS ; ( ) ()( ) T ) ~ ~ - \) Y 1 :: .. S - f . - e ' = - C S O O /c C R >\ S L S" : : " ' ? J oe ~ i ~ l ' t no . l " 1 : : . . l S-O o o .. !bL t< .lO : : : : f o ( , 0 u D _ - + --- . B \ J T I ~ - - . \ ~ e ~ _ .. t L P / 1 \ !g 'O j " ' 2 I fvJ ~ \ - ~ ~ s . o y s o oo ) ~ t o loDD ~ C o O 0 33 00 O · ~1 . \ 1S 2 - i 9 ( o · 7 ' ;) ~ , i G . 11 1 '2 - '- 3 7 0 ·0~ 28 ~~oo J~ a ~ Iq Y OO \ o \ o D 0 3 ~dO C L
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Unformatted text preview: -s D ; : ~ v ' \ SL , .,. .--1: o I 2 . 6 "-2-/ S--: :-0. C./ ( J-: . . d B l l- d ') {;-l 2 O O~; ? l ~ II O l, l y \ Y Lf 2 .-, L I "3 . ~ =--~ ,-W ~ ~f (. s e V \t-\ b . \ I A ~ ~ ~ ' ( ) } 3 \ 9 .~ T\ \ 1" " ' . j _ _ ~ P/F,-'~ % , ~ \ '-,: !-3000 I-1500 I O· ' 6Cf1 )-1 2ll . ' ?-~ L j La I z .. t (j I D .11 5 2 . . 1:&. n 1 5 52 ... I Y L J O ! .(oC)~( p Z-5 C jzJp ~ I I 1 0, 5 1 ~ 8 L7 !w5 , 7g 1 /1 .-f U( ) )000 I ( 1 12 J 1 2 1 (o ~ 5 s S~ I l o 8~ _ .---. ~ 11 500...
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This note was uploaded on 04/13/2011 for the course CHEE 5369 taught by Professor Alim during the Spring '11 term at University of Houston.

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