Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Exercise 18

A machine with a 10-year life is MACRS - depreciated. The machine has a first cost of $40,000 with a $5000 salvage value. Its annual operating cost is $7000 per year, and d t for years 1, 2, and 3 is 10.00%, 18.00%, and 14.40%, respectively. The depreciation charge in year 3 is nearest to:
A) $5800
B) $7200
C) $8500
D) $9300