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Compute the depreciation each year under a 5-year

Computing depreciation

Go to https://www.dell.com (Links to an external site.)Links to an external site.

Find the price of a computer system that you would like to buy. Assume you bought this system for business use and the system has a residual value of $400. Compute the depreciation each year under a 5-year straight-line depreciation. Also, calculate the depreciation using MACRS (Tables 17.4 and 17.5 in the text).

Discussion Questions

Please copy and paste the link to the computer you chose for this problem.
Please copy and paste your depreciation calculations.
Based on the cost of this computer system, would you keep it for more than 5 years? Why or why not?
Do you feel a computer system would actually be worth far less than the depreciated value you calculated? Why?

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Finance Basics: Compute the depreciation each year under a 5-year

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Finance Basics: Compute the depreciation each year under a 5-year

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