The initial investment in the equipment needed for the project is $50,000 for a duration of 10 years. Salvage is estimated at $5,000. Calculate the depreciation charges and book values for year three of the asset using SL? O a. $6400, $25600 O b. $7200, $28800 c. $728, $47784 O d. $4500, $36500

The initial investment in the equipment needed for the project is $50,000 for a duration of 10 years. Salvage is estimated at $5,000. Calculate the depreciation charges and book values for year three of the asset using SL? O a. $6400, $25600 O b. $7200, $28800 c. $728, $47784 O d. $4500, $36500

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 2E

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Question

The initial investment in the equipment needed for the project is $50,000 for a duration of 10 years. Salvage is estimated at $5,000.
Calculate the depreciation charges and book values for year three of the asset using SL?
O a. $6400, $25600
O b. $7200, $28800
O c. $728, $47784
O d. $4500, $36500

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