Homework Answers
Question 13.
Solution: Depreciation in the 5th year under SYD method = ($6,600 - 1,600)×5/(10+9+8+7+6+5+4+3+2+1)
= $5,000×5/55
= $454.54 (option a.)
Question 8.
Solution: PV of annuity = Pmt.[1-(1+i)-n ] / I
= $5,600 [ 1 - (1+0.10)-10 ] / 0.10
= $34,410 (option a.)
Question 6.
Solution: Equivalent uniform annual cost = Uniform annual pmt.for printer + annual maintenance - uniform annual salvage value
= $1,200×i / [1-(1+i)-n ] + $75 - $400×i/[(1+i)n -1 ]
= $1,200×0.08/[1-1.08-5 ] + $75 - $400×0.08 / [1.085 - 1 ]
= $307 (option c.)
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