Unformatted text preview: b) DB 100% Method c) DB 150% Method d) DB 200% Method Problem 2: Why would you rather depreciate an asset earlier rather than later? Problem 3: Two alternative machines will produce the same product, but one is capable of higher quality work, which can be expected to return greater revenue. The following are the relevant data: A B First Cost ($) 20,000 30,000 Life (yrs) 12 8 Terminal BV ($) Market Value ($) 4,000 Annual Receipts ($) 150,000 188,000 Annual Expenses ($) 138,000 170,000 Determine the better alternative assuming “repeatability” and based on the SL depreciation at an income tax of 35%. Also assume that MARR (after tax) is 10%. (Show the tax tables)....
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This note was uploaded on 09/23/2011 for the course IE 151 taught by Professor J3patino during the Spring '11 term at University of the Philippines Diliman.
- Spring '11