ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Jobe Concrete Products placed a new sand sifter
into production 3 years ago. It had an installed cost
of $100,000, a life of 5 years, and an anticipated
salvage of $20,000. Book
the 3 years are $40,000, $24,000, and $14,000, respectively.
(a) Determine the book value after
2 years. (b) If the sifter’s market value today is
$20,000, determine the difference between its current
book value and its market value. (c) Determine
the total percentage of the unadjusted basis
written off through year 3.
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