Question 1:

Your company is considering the purchase of a second-hand scanning microscope at a cost of $10,500, with an estimated salvage value of $500 and a projected useful life of four years.

Determine the straight-line (SL), and double declining balance (DDB) depreciation schedules for year 1 to 4.

Question 2: Find attached questions

Please prepare and submit your solutions to questions of the case available at the end of chapter 5 “Vegetron’s CFO calls again”. Consider data from section 5.1 and additional instructions from pages 130 and 131 to answer questions 1) and 2). Within the latter, elaborate on your recommendations to opt for high or low temperature processes, based on your calculations of each option’s NPV and internal rate of return and any other selection criteria you consider applicable.

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