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Other Fields Homework Help Finance Topic started by: BenAff on Jul 7, 2019



Title: A firm is considering the purchase of a new machine for $300,000. The firm is unsure if it should ...
Post by: BenAff on Jul 7, 2019
Year 0Year 1Year 2Year 3
MACRS
Depreciation Rate33.33%44.45%14.81%7.41%

A firm is considering the purchase of a new machine for $300,000. The firm is unsure if it should use the 3-Year MACRS schedule or straightline depcreciation over three years. What is the difference in the book value after three years if the firm uses MACRS instead of straightline depreciation?

▸ $66,660

▸ $14,820

▸ $7,410

▸ $0


Title: A firm is considering the purchase of a new machine for $300,000. The firm is unsure if it should ...
Post by: Nashua on Jul 7, 2019
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Title: A firm is considering the purchase of a new machine for $300,000. The firm is unsure if it should ...
Post by: BenAff on Jul 7, 2019
Thanks