Problem
A bowling alley costs $500,000 and has a useful life of 10 years. Its estimated MV at the end of year 10 is $20,000. Create a spreadsheet that calculates the depreciation for years 1-10 using (i) the SL method, (ii) the 200% DB method, and (iii) the MACRS method (GDS class life = 10 years). For each method, compute the PW of the depreciation deductions (at EOY 0). The MARR is 10% per year. If a large PW is desirable, what do you conclude regarding which method is preferred?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.