Basics of Engineering Economy 2nd Edition by Anthony Tarquin,Leland Blank

Exercise 6

Jobe Concrete Products placed a new sand sifter into productioN₃ years ago. It had an installed cost of $100,000, a life of 5 years, and an anticipated salvage of $20,000. Book depreciation charges for the 3 years are $40,000, $24,000, and $14,000, respectively. ( a ) termine the book value after 2 years. ( b ) the sifter's market value today is $20,000, determine the difference between its current book value and its market value, and state which is lower. ( c ) termine the total percentage of installed cost written off through year 3.