An income producing asset costs $50,706 and will be depreciated using Double Declining Balance with a $3,363 salvage value over 9 years. What is the Book Value in year 2?

You must evaluate the purchase of a spectrometer for the R&D department. The base price is $140,000, and it would cost another $30,000 to modify the equipment for special use by the firm. The equipment falls into the MACRS 4 year class and would be sold after 4 years for $60,000. The applicable depreciation rates are 33%, 45%, 15% and 7%. The equipment would require an $8000 increase in net operating working capital. The project would have no effect on revenues, but it should save the firm $50,000 per year before-tax labour costs. The firm's marginal federal-plus state tax rate is 40%.   QUESTION:W Whatare the project's annual cash flows in Years 1, 2,3 and 4?

Labor costs, materials, all direct and indirect costs, and facilities and productive equipment with a useful life of one year or less are usually depreciated. O True O False

An asset costs $14300. What declining-balance depreciation rate would result in the scrap value of $5820 after 4 years? (Units of % required for response)