A company purchased equipment for new highway construction in Manitoba, Canada, costing $500,000 Canadian. Estimated salvage at the end of the expected life of 5 years is $50,000. Various acceptable depreciation methods are being studied currently.
Determine the depreciation for year 3 using the DDB, 150% DB and SL methods.
Calculate the depreciation rate dt for each year t for the DDB method.
Plot the book value curves for DDB and SL depreciation.