Suppose we are thinking about replacing an old computer with a new one. The old one cost us $1,260,000; the new one will cost $1,520,000. 3
Suppose we are thinking about replacing an old computer with a new one. The old one cost us $1,260,000; the new one will cost $1,520,000. The new machine will be depreciated straight-line to zero over its five-year life. It will probably be worth about $260,000 after five years. The old computer is being depreciated at a rate of $252,000 per year. It will be completely […]
