Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

تمرين 33

Youngblood Shipbuilding Yard just purchased $800,000 in capital equipment for ship repairing functions on dry-docked ships. Estimated salvage is $150,000 for any year after 5 years of use. Compare the depreciation and book value for year 3 for each of the following depreciation methods.
a) GDS MACRS where a recovery period of 10 years is allowed
b) Double declining balance with a recovery period of 15 years
c) ADS straight line as an alternative to MACRS, with a recovery period of 15 years