(Clearly present the cash flow diagram(s), equivalencymodel(s), assumptions made and detailed calcul

(Clearly present the cash flow diagram(s), equivalencymodel(s),

assumptions made and detailed calculations) We are considering the purchase of a minicomputer at acost of $10,500, with an estimated salvage value of $500 and aprojected useful life of four years. Interest is

10%.

Determine:

a. depreciation charges using straight line method b. depreciation charges using double declining balancemethod c. depreciation charges using MACRS method d. which depreciation method should be used. . . .

 

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