Question
In: Finance
Your company purchases two machines, which cost $4,000 and $9,000, respectively. They have linear straight-line depreciation...
Your company purchases two machines, which cost $4,000 and $9,000, respectively. They have linear straight-line depreciation schedules of 7 and 5 years, respectively. What is the present value of the depreciation, given a cost of capital of 5.8%?
Solutions
Expert Solution
Solution :
The present value of depreciation of Machine 1 = $ 3,212.73
= $ 3,213 ( when rounded off to the nearest whole number )
The present value of depreciation of Machine 2 = $ 7,623.69
= $ 7,624 ( when rounded off to the nearest whole number )
Please find the attached screenshot of the excel sheet containing the detailed calculation for the solution.
jeff jeffy answered 1 year agoRelated Solutions
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