11-6) A construction company needs asphalt machinery and equipment to pave a road for 600,000 units. The working hours per year for machines in the next 8 years will be as follows Year Hours a year 3000 1 2 4000 3 4000 4 1600 5 1800 6 1800 7 2200 8 2200 If at the end of the asphalt work of this road, which is estimated to be eight years old, the machines have a scrap value of 60,000 units, perform the following calculations: A) Depreciation amounts and book value using SOYD method B) Depreciation amounts and book value using the depreciation method based on the duration of the operation C) Which of the above depreciation methods is more economical? MARR = 10%

The loanable funds theory is a neoclassical theory that determines the interest rate where the demand for loanable investments and supply of loanable funds intersect. To determine the interest rate, this theory employs linear regression and a demand curv…