Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Exercise 6

If B = $45,000, S = $3000, and n = 5-year recovery period, use a spreadsheet and i = 18% per year to maximize the present worth of depreciation, using the following methods: DDB-to-SL switching (this was determined in Problem 16A.6) and MACRS. Given that MACRS is the required depreciation system in the United States, comment on the results.