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24858698 Project Management Professional Exam PMP

24858698 Project Management Professional Exam PMP

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Published by: suzeet1 on Aug 04, 2013
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07/10/2015

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You are the project manager for an information technology division of
a large financial services firm in the United States. Your company
offers a web based trading platform that provides options and futures
trading for U.S commodities markets. Due to the rise in popularity of
futures and options trading, your company has grown rapidly.
To keep up with the demands you have been assigned with the
responsibility of upgrading company’s network and computing
infrastructure. You planned to purchase a new high-end mainframe
server. The new server will cost $150,000 and can be used for 10
years. After 2 years the resale value of mainframes will be $100,000.
After 5 years the resale value of server will be $75,000. After 7 years
the resale value of server will be $30,000. After 10 years, the server
will be obsolete.
What is the annual depreciation expense for this server if you use
straight-line depreciation?
A.None of the choices are correct
B.25,000

C.150,000
D.5,000
E.15,000

Answer: E

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