In Capsim, investment in plant & equipment (including automation) is depreciated on a straight line basis...

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In Capsim, investment in plant & equipment (including automation) is depreciated on a straight line basis over 15 years. Imag

business accounting

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Answer 1

Answer #1

Answer 1.. $3,813333.33

Calculated as

Book value of equipment sold = $52 x 7/15 x 800000/2000000 = 9706666.67

sale value = 52 x 800000/2000000 x 65% = 1352000

Profit on sale = 13520000-9706666.67 = $3813333.33

Answer 2. add $10 million in cash

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Answer 2

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In Capsim, investment in plant & equipment (including automation) is depreciated on a straight line basis...

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