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

Exercise 3

Quantum Electronic Services paid P = $0,000 for its networked computer system.Both tax and book depreciation accounts are maintained.The annual tax recovery rate is based on the previous year's book value (BV), while the book depreciation rate is based on the original first cost (P).Use the rates listed to plot (a) annual depreciation and (b) book values for each method.