An asset costing $32,000 has a useful life of five years at which time it can be sold for $7,000….

1. An asset costing $32,000 has a useful life of five years at which time it can be sold for $7,000. Compute the net present value of the depreciation charges using an interest rate of 5% and the sum of the year’s digits method. 2. A company is considering the purchase of a machine which costs 562,000, has an expected life of four years and has a scrap value of $15,000. The machine is expected to increase revenue by $16,000 each year and requires a maintenance cost of $2,000 per year. Assuming a tax rate of 38%, compute the net present value for this investment using an interest rate of 5% and the double declining balance method for two years followed by the straight-line method. 3. An asset costs $102,000 and has an expected life of 20 years at which time it will have a scrap value of $16,000. The asset will increase revenue by $22,000 after maintenance costs. Assume a tax rate of 42% and use the straight-line method of depreciation to compute the internal rate of return for the investment.



Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more