The Parkview Hospital is considering the purchase of a new autoclave. This equipment will cost $159,000. This asset will be depreciated using an MACRS (GDS) recovery period of three years. What is the BV at the end of the second year? Click the icon to view the GDS Recovery Rates (r) for the 3-year property class. Choose the correct answer below. More Info O A. The BV at the end of the second year is $50,880. O B. The BV at the end of the second year is $70,676. OC. The BV at the end of the second year is $35,330. O D. The BV at the end of the second year is $106,005 GDS Recovery Rates (r,) 3-year Property Class Year 0.3333 0.4445 3 0.1481 0.0741

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter9: Capital Budgeting And Cash Flow Analysis
Section: Chapter Questions
Problem 14P
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The Parkview Hospital is considering the purchase of a new autoclave. This equipment will cost $159,000. This asset will be depreciated using an MACRS (GDS) recovery period of three years. What is the BV at the end of the second year?
Click the icon to view the GDS Recovery Rates (r) for the 3-year property class.
Choose the correct answer below.
More Info
O A. The BV at the end of the second year is $50,880.
O B. The BV at the end of the second year is $70,676.
GDS Recovery Rates (r)
O C. The BV at the end of the second year is $35,330.
3-year Property Class
0.3333
Year
O D. The BV at the end of the second year is $106,005.
1
2
0.4445
3
0.1481
0.0741
Transcribed Image Text:The Parkview Hospital is considering the purchase of a new autoclave. This equipment will cost $159,000. This asset will be depreciated using an MACRS (GDS) recovery period of three years. What is the BV at the end of the second year? Click the icon to view the GDS Recovery Rates (r) for the 3-year property class. Choose the correct answer below. More Info O A. The BV at the end of the second year is $50,880. O B. The BV at the end of the second year is $70,676. GDS Recovery Rates (r) O C. The BV at the end of the second year is $35,330. 3-year Property Class 0.3333 Year O D. The BV at the end of the second year is $106,005. 1 2 0.4445 3 0.1481 0.0741
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