Economics Question

CON-E330-1 Final Exam Sp24 Last Name: ______________ First __________ Class ID #____ Total points 100 No Recording, Copy or email Attachments. Please Explain in detail and show of your work for each Problem with Set up, Formula; Calculation… and Recommendation. Box Your Answer Use Provided Space. No Recording, Copy or email Attachments. Please Q-1.Net Edge, Inc, is considering the purchase of new test equipment. The equipment will cost $500,000 and is expected to last for 8 years and the support engineer has the following information concerning the savings and salvage value estimates and project probabilities. Determine the NPW with 10%.? P=0.05 P= 0.20 P=0.25 P=0.50 Saving per year $105,000 $65,000 $90,000 $82,000 Salvage Value 75,000 40,000 65,000 55,000 Explain in detail and show of your work for each Set up, Formula, Calculations & Recommendation. 40 points Q-2. Local Construction Company is considering the purchase of research equipment at a cost of $1,750,000; with an Estimates salvage value of $250,000 at end of its 3-year projected useful life. Show detail of your calculation for each method with Yearly-Depreciation and Book Value. Total 60 points a) Determine the straight-line (SL) Method. 10 points b) Sum-Of- Years-Digit (SOYD) Method. 15 points c) Double Declining Balance (DDB) Method. 15 points d) Modified Accelerated Cost Recovery (MACRS) Method. 20 points