Question

Winds Asiacell |اده + Arna A materials-testing machine was purchased for $20,000 and was to be used for 5 years with an expected .residual salvage value of $5000 The asset value at the end of 3 years if the straight-line method is used 2- The asset value at the end of 3 years if sum of the years digits method is used? 3-The asset value at the end of 3 years if double declining method is used? AU I B O

This question concerns the Engineering economics I needed the solution within half an hour

Answer 1

Given: 5 years 3 To find : Initial cost of machine (Vo) = $20000 service life of machine (n) = salvage value of machine (Vs J = $ 5000 Asset value at the end of years. By straight line method : d vo-vs where ď is depreciation value. Va = V - and 0 vay asket value. a year after which aseet value is calculated. $(20000 - 5000) d = 5 da 15000 $3000 ک a=3 years (given) W3 20000 -(3x3000) 20000 - 9000 V. 3 110 00 And:

By Sun og of the Year digite Method here, na tl En (Vo-ve) d depress- -ation value En = n(n+1) 06.11 2 do this method d,, da and dz is calculated 3rd year respectively. for 1st, 2nd and d, 5- Xxx 51541) 2 X (20000 - 5000) SOOO x 15560 8x 6 7 dz - 5-241 X (20000 - 500o) 5(5+1) 2 300o 500 4 X 2 x 15000 SX 4000 d dz 1) 3 x (20000 - 5000) 5- 3 +) 5(5+1) 2 3ooo BX2 x 15000 asset 3000 value V2 vo-(d, + d₂ + dz

If any query arises must put it in the comments section. I'll be happy to help. And all asset values are in dollars.