Homework 6 2010 Solution

# Homework 6 2010 Solution - Problem#1 Max 400 Problem#2 400...

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Max Earned Problem #1 400 Problem #2 400 Problem #3 200 Total 1000 0 Save File as Last Name.FirstName.Homework 6.xls example: Phillips.Richard.Homework6.xls

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Corrected Problem 1 must be correct in every respect to get Problem 2 must be correct in every respect to get Part A must say words to the effect that "the accelerated depreciation schedule leads to m and the 10 year S/L leads to more depreciation in t 0 Part B must say words to the effect that "Cash early is worth more than cash later"
full credit full credit ore depreciation in early years the later years"

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400 Year MACRS New Fixed Cap Asset Value 1990 \$25,000,000 \$21,427,500 \$3,572,500 1991 \$2,908,237 \$17,797,650 \$6,538,087 1992 \$2,972,007 \$15,260,230 \$5,509,427 1993 \$838,749 \$11,620,126 \$4,478,852 1994 \$4,414,328 \$12,082,695 \$3,951,760 1995 \$1,947,844 \$9,663,516 \$4,367,022 1996 \$2,557,357 \$7,744,259 \$4,476,614 1997 \$4,466,224 \$8,339,227 \$3,871,256 1998 \$3,941,805 \$9,069,279 \$3,211,753 1999 \$3,700,008 \$9,399,499 \$3,369,788 2000 \$1,129,091 \$7,380,130 \$3,148,459 2001 \$526,077 \$5,417,282 \$2,488,925 2002 \$2,956,445 \$6,097,170 \$2,276,557 2003 \$3,711,475 \$7,126,295 \$2,682,349 2004 \$773,705 \$5,315,643 \$2,584,357 2005 \$3,797,524 \$6,708,715 \$2,404,452 2006 \$4,467,584 \$8,432,198 \$2,744,100 2007 \$4,782,831 \$9,984,143 \$3,230,886 Following is a history of Capital Investment at the Alaska depreciation schedule and determine the Asset Value and colored spaces below for your answer, and show the det designated. New Fixed Capital Annual Depreciation
Check in 2007 the Asset Value is equal to original Investment + all subsequen \$9,984,143

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14.29% 24.49% 17.49% 12.49% 8.93% 1990 1991 1992 1993 1994 \$25,000,000 \$2,908,237 \$2,972,007 \$838,749 \$4,414,328 Space provided for the Depreciation Calculations 1990 1991 1992 1993 1994 \$3,572,500 \$6,122,500 \$4,372,500 \$3,122,500 \$2,232,500 \$415,587 \$712,227 \$508,651 \$363,239 \$424,700 \$727,845 \$519,804 \$119,857 \$205,410 \$630,807 \$3,572,500 \$6,538,087
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Homework 6 2010 Solution - Problem#1 Max 400 Problem#2 400...

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