How do the internet standards allow for greater commerce? what potential problems could we have if we did not have the ieee?
1 answer:
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Answer:
Depreciation is defined as fall or decline in the value of an asset due to normal wear and tear or efflux of time.
Depreciation as per straight line method =
Depreciation to be written off every year =
= $38,960
Hence rate of depreciation under straight line method (SLM) = $38960/$238,400= 16.34% per annum
Rate of depreciation as per double declining method = 2 × rate of depreciation as per SLM
= 2 × 16.34%= 32.68%
Under double declining method, depreciation expense each year= double decling rate in percent × book value of the asset at the beginning of each year
Depreciation for first year= 32.68% × 238400= $77,909
Depreciation for year 2 = 32.68% of (238,400- 77,909 )= $52,448
Year 3= 32.68% of (238,400- 77,909-52448)= $35,308
Year 4= 32.68% of (238,400-77,909-52,448-35,308)= $23,770
Year 5= 32.68% of (238,400- 77,909-52,448-35308-23770)= $16,001
Answer:
a. project A; because its NPV is about $335 more than the NPV of project B.
Explanation:
As in the question it is mentioned that the required rate of return for project A and project B is 11.25% and 10.75% respectively.
Here we have to determined the net present value for both projects having different required rate of return
So based on the net present value the first option is correct as the project A is more than the project B
Therefore the first option should be accepted
