A new electric saw for cutting small pieces of lumber in a furniture manufacturing plant has a cost basis of $4,000 and a 10-year depreciable life. The estimated SV of the saw is zero at the end of 10 years. Use the DB method to calculate the annual depreciation amounts when. Assume a six years EoY. a. R=2/N (200% DB method) b. R=1.5/N (150% DB method). Tabulate the annual depreciation amount and BV for each year. (HW)

ENGR.ECONOMIC ANALYSIS
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Using an Engineering Economics Formula

A new electric saw for cutting small pieces of lumber in a furniture manufacturing plant
has a cost basis of $4,000 and a 10-year depreciable life. The estimated SV of the saw is
zero at the end of 10 years. Use the DB method to calculate the annual depreciation
amounts when. Assume a six years EoY.
a. R=2/N (200% DB method)
b. R=1.5/N (150% DB method).
Tabulate the annual depreciation amount and BV for each year. (HW)
Transcribed Image Text:A new electric saw for cutting small pieces of lumber in a furniture manufacturing plant has a cost basis of $4,000 and a 10-year depreciable life. The estimated SV of the saw is zero at the end of 10 years. Use the DB method to calculate the annual depreciation amounts when. Assume a six years EoY. a. R=2/N (200% DB method) b. R=1.5/N (150% DB method). Tabulate the annual depreciation amount and BV for each year. (HW)
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