A cooling water pumping station at a manufacturing plant in N City cost $30,000,000 to construct, and it is projected to have a 25-year life with an estimated salvage value of 10% of the construction cost. If the cooling water pumping station will be book-depreciated to zero over a recovery period pf 30 years, calculate d_10 using the double declining balance method.

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter19: Capital Investment
Section: Chapter Questions
Problem 18E
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A cooling water pumping station at a manufacturing plant in N City cost $30,000,000 to construct, and it is projected to have a 25-year life with an estimated salvage value of 10% of the construction cost. If the cooling water pumping station will be book-depreciated to zero over a recovery period pf 30 years, calculate d_10 using the double declining balance method.

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