Engineering Economic Analysis

Problems 369

corporation? Use a spreadsheet to show your compu-

tations of the Qifference in present worths.

11-32 The FOURX Corp. has purchased $12,000 of exper-

. imental equipment. The anticipated salvage value is
~ $400 at the end of its 5-year depreciable life. This
profitable corporation is considering two methods of
depreciation: sum of years' digits and double declin-
ing balance. If it uses 7% interest in its comparison,
which method do you recommend? Show computa-
tions to support your recommendation. Use a spread-
sheet to develop your solution.

11-33 Given the data in Problem 11-16, use a spreadsheet

ala function to compute the MACRS depreciation sch-edule. Show the total depreciation taken (=sum( » as

well as the PW of the depreciation charges discounted

at the MARR %.

11-34 Office equipment whose initial cost is $100,000 has

. an estimated actual life of 6 years, with an estimated
~ salvage value of $10,000. Prepare tables listing the
annual costs of depreciation and the book value at
the end of each 6 years, based on the straight-line,
sum-of-years' -digits, and MACRS depreciation. Use
spreadsheet functions for the depreciation methods.
11-35 You are equipping an office. The total office equip-

Alament will have a first cost of $1,750,000 and a salvagevalue of $200,000. You expect the equipnient will last

10 years. Use a spreadsheet function to compute the

MACRS depreciation schedule.

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