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

Exercise 5

Butler Buildings purchased semiautomated as­sembly and riveting robotics equipment for con­structing its modular warehouse buildings.The first cost was $75,000 and installation costs were $5,000; life is estimated at 10 years with a salvage of 15% of first cost.Use the SL method to determine (a) annual recovery rate, (0) annual depreciation, (c) book value after 5 years, and (d) book value after 10 years.