1. A company owns the same asset in a U.S.

plant (New
York) and in a EU plant (Paris). It has B= $2,000,000
and a salvage value of 20% of B. For tax depreciation
purposes, the United States allows a straight line
write-off over 5 years, while the EU allows SL writeoff over 8 years. The general managers of the two
plants want to know the difference in ( a ) the
depreciation amount for year 5 and ( b ) the book
value after 5 years. Using a spreadsheet, write cell
functions in only two cells to answer both questions.
2. Shirley is studying depreciation in her engineering
management course. The instructor asked her to
graphically compare the total percent of first cost
depreciated for an asset costing B dollars over a life
of n _ 5 years for DDB and 125% DB edepreciation.
Help her by developing the plots of percent of B
depreciated versus years. Use a spreadsheet unless
otherwise instructed.