Problem
Practice 1. The initial cost for the proposed project is $75,000. The project will generate the following each year:
The initial cost of the project will be paid off in how many years?
Year 1 $5,000
Year 2 $10,000
Year 3 $15,000
Year 4 $20,000
Year 5 $25,000
Year 6 $30,000
Year 7 $35,000
Year 8 $40,000
Year 9 $45,000
Year 10 $50,000
Practice 2. The Honey Corp. acquired computers for installed cost of $30,000. Compute their depreciation using MACRS.