A gas-powered electric generator is purchased by a public utility as part of an expansion program. It is expected to be useful, with proper maintenance, for an estimated 30 years. The cost is $15.5 million, installed. The salvage value at the end of 30 years is expected to be 10.5% of the original cost. a. What is the MACRS-GDS property class? b. Determine the depreciation deduction (d;) and the unrecovered investment (B;) for years 1, 5, and the last depreciable year of the generator. d1 = $ B1 = $ d5 = $ B5 = $ diast = $ , Blast year = $ year Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. Tolerance is ± 100.

A gas-powered electric generator is purchased by a public utility as part of an expansion program. It is expected to be useful, with proper maintenance, for an estimated 30 years. The cost is $15.5 million, installed. The salvage value at the end of 30 years is expected to be 10.5% of the original cost. a. What is the MACRS-GDS property class? b. Determine the depreciation deduction (d;) and the unrecovered investment (B;) for years 1, 5, and the last depreciable year of the generator. d1 = $ B1 = $ d5 = $ B5 = $ diast = $ , Blast year = $ year Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. Tolerance is ± 100.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 2E

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