Some Equipment Costs Usd1000 Has 5 Year

Some equipment costs $1000, has a 5-year depreciable life, and an estimated $50 salvage value at the end of that time. You have been assigned the problem to determine whether to use straight-line or SOYD depreciation. If a 10% interest rate is appropriate, which is the preferred depreciation method for this profitable corporation? Use a spreadsheet to show your computations of the Difference in present worth’s.

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