# Suppose an insurance business buys a \$300,000 office building, which it wishes to depreciate over 6.

\$300,000 office building, which it wishes to depreciate over 6 years with a
scrap value of \$100,000. Analyze the cash flow if the net annual income is
\$60,000 the first year and increases by \$60,000 each year. If the tax rate =
40%, find the NPV at 30% and the IRR in each of these situations:

a. Make a schedule and use straight-line
depreciation.

b. Make a schedule and use sum of years
digits depreciation.

c. Make a schedule and use double declining
balance depreciation. Switch to straight-line depreciation starting the 3rd
year.

d. Find the

\$300,000 office building, which it wishes to depreciate over 6 years with a
scrap value of \$100,000. Analyze the cash flow if the net annual income is
\$60,000 the first year and increases by \$60,000 each year. If the tax rate =
40%, find the NPV at 30% and the IRR in each of these situations:

a. Make a schedule and use straight-line
depreciation.

b. Make a schedule and use sum of years
digits depreciation.

c. Make a schedule and use double declining
balance depreciation. Switch to straight-line depreciation starting the 3rd
year.

d. Find the income units depreciation if we
hope to have income units (in hundred thousand dollars) of 6, 12, 18, 24, 30,
and 36 for each year from this buildings use.

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors:
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

# Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

### Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

### Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

### Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.