Basics of Engineering Economy 1st Edition by Leland Blank,Anthony Tarquin

Exercise 1

Puritan Cement Products placed a new sand sifter into production 3 years ago.It had an installed cost of $00,000, a life of 5 years, and an anticipated salvage of $0,000.Book depreciation charges for the 3 years are $0,000, $4,000, and $4,000, respectively.
a.Determine the book value after 3 years.
b.If the sifter's market value today is $0,000, determine the difference between current book value, market value, and the expected salvage were it retained for 2 more years.
c.Determine the yearly depreciation rate d t (t = 1, 2, 3) and total percentage of installed cost written off thus far.