Central supply purchased a new printer for $67,500. the printer is expected to operate for nine (9) years, after which it will be sold for salvage value (estimated to be $6,750). how much is the first year’s depreciation expense if the company uses the double-declining-balance method? a. $15,000 b. $ 7,500 c. $18,000 d. $13,500 e. none of the above

Six years ago, an 80-kw diesel electric set cost $160,000. the cost index for this class of equipment six years ago was 187 and is now 194. the cost-capacity factor is 0.6. the plant engineering staff is considering a 120-kw unit of the same general design to power a small isolated plant. assume we want to add a precompressor, which (when isolated and estimated separately) currently costs $13291. determine the total cost of the 120-kw unit. (hint: skip $ and comma symbols)