Please review the discussion question below and describe the steps you would take to

evaluate the situation. I am looking for steps, calculations, and for the reasoning behind

your approach as well.Your answer should clearly list out all steps and indicate your

answer. If there are any assumptions you are making, please list them as well. The

assignment should not be more than one typed page –single-spaced – no less than

10pt font size.

Discussion Questions:

Question A:

Your company is planning to procure a machine which is expected to be used for

several years, after which it will be replaced by another machine. How would you

determine *when* Is the right time for a replacement? What components/calculations

would you consider in coming up with a recommendation?

Question B:

A company is planning to purchase equipment for $500,000. The company expects the

machine to have a salvage value of $25,000 at the end of the useful life which is

expected to be 25 years. Create a depreciation schedule for this equipment based on

the Straight-Line method.

Question C:

How would the depreciation schedule be affected in Question B, if the actual annual

operating costs for the machine are higher than the expectations?