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In: Economics

4) Compute the depreciation and book value each year of a machine that costs $67,000 to...

4) Compute the depreciation and book value each year of a machine that costs $67,000 to purchase and $3,000 to install with an 8-year life. Use the double declining balance method with switching to straight line depreciation. (a) Fill out the following table, assuming a $1,000 salvage value. (b) What would be D7 if the salvage value was $18,000?

n

Dn

Bn

DBB

SL

0

1

2

3

4

5

6

7

8

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