MGFB10H3 Final: Assignment+2 2
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Which investment returns a greater future value at time 10; A or B
INVESTMENT A
time | return | investment |
0 | $1,000.00 | |
1 | 3% | |
2 | 3% | |
3 | 3% | |
4 | 3% | |
5 | 3% | |
6 | 3% | |
7 | 3% | |
8 | 3% | |
9 | 3% | |
10 | 3% |
INVESTMENT B
time | return | investment |
0 | $1,000.00 | |
1 | -1% | |
2 | -1% | |
3 | 2% | |
4 | 3% | |
5 | 2% | |
6 | -3% | |
7 | 7% | |
8 | 6% | |
9 | 6% | |
10 | 4% |
A firm is evaluating the acquisition of an asset that costs $61,200 and requires $3,570 in installation costs. If the firm depreciates the asset underรขยย MACRS, using aรขยย 5-year recovery periodรขยย
determine the depreciation charge for each year.
Rounded Depreciation Percentages by Recovery Year Using MACRS for | ||||
First Four Property Classes | ||||
Percentage by recovery year* | ||||
Recovery year | 3 years | 5 years | 7 years | 10 years |
1 | 33% | 20% | 14% | 10% |
2 | 45% | 32% | 25% | 18% |
3 | 15% | 19% | 18% | 14% |
4 | 7% | 12% | 12% | 12% |
5 | 12% | 9% | 9% | |
6 | 5% | 9% | 8% | |
7 | 9% | 7% | ||
8 | 4% | 6% | ||
9 | 6% | |||
10 | 6% | |||
11 | 4% | |||
Totals | 100% | 100% | 100% | 100% |