ENG106W12_HW8-assignment

ENG106W12_HW8-assignment - ENG 106 Homework #8 Solutions...

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1 ENG 106 Homework #8 Solutions Winter 2012 Due: Wed, Mar 7, 3 pm, HW box 8.7 Consider the following data on an asset: Cost of the asset, I \$110,000 Useful life, N 5 years Salvage value, S \$10,000 Compute the annual depreciation allowances and the resulting book values, using the following methods: a) The straight-line depreciation method and calculate the Present Worth of the deductions, b) The double declining depreciation method and calculate the Present Worth of the deductions. Use i = 10% for the Present Worth calculations. 8.10 Consider the following data on an asset: Cost of the asset, I \$45,000 Useful life, N 7 years Salvage value, S \$0 Compute the annual depreciation allowances and the resulting book valuesby using the DDB method and then switching to the SL method. 8.11 The double-declining-balance method is to be used for an asset with a cost of \$90,000, estimated salvage of \$12,000, and estimated useful life of six years. (Calculate the depreciation schedule over the full six years.) b) If switching to the straight-line method is allowed, when is the optimal time to switch?

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This note was uploaded on 04/03/2012 for the course ENGIN 106 taught by Professor Fizali during the Spring '12 term at Laney College.

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ENG106W12_HW8-assignment - ENG 106 Homework #8 Solutions...

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