Problem
Some equipment that costs $1000 has a 5-year depreciable life and an estimated $50 salvage value at the end of that time. You have been assigned to determine whether to use straight-line or SOYD depreciation. If a 10% interest rate is appropriate, which is the preferred depreciation method for this profitable corporation? Use a spreadsheet to show your computations of the difference in present worths.
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.