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31 Page 11. George Washington Hospital new Chief Executive Officer wants to increase efficiency of GWH data processing operat
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Answer #1

Cost of Computer $2,700,000

Life 8 Year

Residual Value $100,000

Depreciation = (Cost of Assets - Residual Value) / Life

= ($2,700,000-$100,000)/8

= $325,000

total Depreciation in 5 Year = $325,000 * 5 ie 1,625,000

Book value after 5 Year = $2,700,000 - 1,625,000 = $1,075,000

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