A company purchased an asset for $2,750,000 that will be use…

A company purchased an asset for $2,750,000 that will be used in a 3-year project. The asset is in the 3-year MACRS class. The depreciation percentage each year is 33.33 percent, 44.45 percent, and 14.81 percent, respectively. What is the book value of the equipment at the end of the project?

Country Breads uses specialized ovens to bake its bread. One…

Country Breads uses specialized ovens to bake its bread. One oven costs $296,000 and lasts about 10 years before it needs to be replaced. The annual operating cash outflow per oven is $50,000. What is the equivalent annual cost, or EAC, of an oven if the required rate of return is 20 percent?