Question: A bowling alley costs $500,000 and has a useful life of 10 years. Its estimated MV at the end of year 10 is $20,000. Create a spreadsheet that calculates the depreciation for years 1-10 using
(i) the SL method,
(ii) the 200% DB method, and
(iii) the MACRS method (GDS class life = 10 years).
For each method, compute the PW of the depreciation deductions (at EOY 0). The MARR is 10% per year. If a large PW is desirable, what do you conclude regarding which method is preferred?