lajor medical complexes and their service providers continue to move toward advanced health informatics - acquiring, man nd using information to provide better healthcare. A new analyzer for researching and evaluating patient samples, and maki formed recommendations in the treatment of complex blood cancers, is purchased for $290,000. It is estimated to have a u 6 years and to be sold at the end of that time for $9,500. art a Develop a table showing the depreciation and book value for each year using both the Excel® DDB worksheet function ane Excel® SLN worksheet function such that the depreciation switches from double declining balance to straight-line at the o time. Year Depreciation Book Value

lajor medical complexes and their service providers continue to move toward advanced health informatics - acquiring, man nd using information to provide better healthcare. A new analyzer for researching and evaluating patient samples, and maki formed recommendations in the treatment of complex blood cancers, is purchased for $290,000. It is estimated to have a u 6 years and to be sold at the end of that time for $9,500. art a Develop a table showing the depreciation and book value for each year using both the Excel® DDB worksheet function ane Excel® SLN worksheet function such that the depreciation switches from double declining balance to straight-line at the o time. Year Depreciation Book Value

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter26: Capital Budgeting (capbud)

Section: Chapter Questions

Problem 5R

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Friendly Tests Inc. is a commercial testing lab, performing a variety of lab tests for hospitals in the area. The management is considering an addition of a new type of test. There is plenty of room in its existing lab facility, but the new test would require an acquisition of new test equipment. The purchase price of the equipment is $215,000. It will be depreciated using MACRS 7-year recovery period (use the rates listed in Table 16-2 in the textbook). The management expects the demand for the new test type to only last 6 years, and therefore the project is expected to end in 6 years, and the equipment to be sold for $60,000 at the end of year 6. The company will also need to hire a part-time lab technician, for $30, 000 in the first year of the project, with an annual pay increase of 5% each year after. Equipment maintenance and operating cost is expected to be $4, 000 per year. It is also expected additional supplies will be needed, costing $10,000 per year. The additional revenues…
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