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11-31 A small used delivery van can be purchased for $20,000. At the end of its useful life (8 years), the van can be sold fo

Year BTCF BTCF Purchase benefits- & salvage expenses -20000 5000 2 5000 3 5000 4 5000 5 5000 6 TL 5000 7 5000 8 3000 5000



Also find the After Tax Cash Flows(ATCF) and Net present value(NPV) and Rate of Return (IRR) for each method

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a. Calculate straight line depreciation: Cost-Salvage value Depreciation= Useful life $20,000-$3,000 8 S2.125 Per annum ThereAnnual Depreciation expense Year End of year 1 $20,000 $5,000.00 $3,750.00 $2,812.50 2 $15,000.00 $11,250.00 $8,437.50 3 $2,1Year Rate Depreciation 14.29 1 2,858 2 24.49 4,898 17.49 3 3,498 2,498 12.49 5 8.93 1,786 8.92 6 1,784 7 8.93 1,786 8 4.46 89

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