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2014//4(a)//Engineering Eco//KU

Determine how sensitive the decision to invest in the system is to the estimates of The RX Drug Company has just purchased a capsulating machine for $76,000. The plant engineer estimates the machine has a useful life of 5 years and little or no salvage value. He will use zero salvage value in the computations. Compute the depreciation schedule for the machine using: (a) Straight-line depreciation. (b) Sum-of-years'-digits depreciation. (c) Double declining balance depreciation.



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