Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Exercise 32

A company owns the same asset in a U.S. plant (New York) and in a EU plant (Paris). It has B = $2,000,000 and a salvage value of 20% of B. For tax depreciation purposes, the United States allows a straight line write-off over 5 years, while the EU allows SL write-off over 8 years. The general managers of the two plants want to know the difference in
a) the depreciation amount for year 5 and b) the book value after 5 years. Using a spreadsheet, write cell functions in only two cells to answer both questions.