An American manufacturing company has new equipment with a first cost of $ 25,000, an estimated salvage value of $ 1,500 and a recovery period of 9 years. Using the SYD method what is the book value at the end of the 5th year? a. $ 9, 333.33 b. $ 6, 722.22 c. $ 5, 221.93 d. $ 4, 111.11

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
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An American manufacturing company has new equipment with a first cost of $ 25,000, an estimated salvage value of $ 1,500 and a recovery period of 9 years. Using the SYD method what is the book value at the end of the 5th year? a. $ 9, 333.33 b. $ 6, 722.22 c. $ 5, 221.93 d. $ 4, 111.11
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