Return on Software: Maximizing the Return on Your Software Investment

Chapter 14 Self-Study Questions

1.	The depreciation amount is ($22,500 – $500) / 5 years = $4400/year. End of Year Depreciation Amount in Year Book Value at End of Year 0 — $22,500 1 $4400 $18,100 2 $4400 $13,700 3 $4400 $9300 4 $4400 $4900 5 $4400 $500
2.	The depreciation factor is α = 2.00 / 5 = 0. End of Year Depreciation Amount in Year Book Value at End of Year 0 — $22,500 1 $9000 $13,500 2 $5400 $8100 3 $3240 $4860 4 $1944 $2916 5 $1166 $1750
3.	The depreciation factor is α = 1.50 / 5 = 0.3 End of Year Depreciation Amount in Year Book Value at End of Year 0 — $22,500 1 $6750 $15,750 2 $4725 $11,025 3 $3308 $7717 4 $2351 $5366 5 $1610 $3756
4.	The 150% declining balance depreciation factor is α = 1.50 / 5 = 0.3 The straight-line depreciation amount is $22,500 / 5 = $4500. (Salvage value is ignored.) End ...