4. Loretta Livermore Labs purchased R&D equipment costing $200,000. The interest rate is 5%, salvage...

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Accounting

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4. Loretta Livermore Labs purchased R&D equipment costing $200,000. The interest rate is 5%, salvage value is $20,000, and expected life is 10 years. Compute the Present Worth (PW) of the depreciation deductions assuming: a. Straight-Line depreciation b. Double declining balance depreciation c. 100% bonus depreciation d. MACRS depreciation e. What method is preferred for determining the firm's taxes? f. Which method is preferred for determining the firm's value? g. Is using two accounting methods ethical

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