I'm taking a finance course and need to better understand a provided homework solution.

The question I have involves depreciation (based on MACRS tax/depreciation rates).

The instructor tends to provide very lengthy solutions (sometimes up to 15 pages/slides) per problem.   I took his PDF solution and used "snapshots" of the relevant (from my perspective) information and put them into a Word document (see attachment).  I've marked the key areas with red boxes.  

What do I need to figure out is the following:   Based on Figure 4, I need to determine as to how the professor arrived at the "$3,840; $3,840; $1,600".  

Thank you,
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This is more of a finance question rather than an Excel question. However, with my very limited knowledge of bean-counting, I suspect that the accumulated depreciation contains two elements that are depreciated at different rates. i.e. one item that depreciates at $1,600 per period and another (or others) that depreciate at $2,240 per period - and that can be fully depreciated after two periods (maybe the installation costs?).

I hope that this gives you something else to look at.


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ExpExchHelpAnalystAuthor Commented:
Thanks, Steve... I'll keep on w/ the number-crunching.

ExpExchHelpAnalystAuthor Commented:
Thanks... I figured out the answer... it's 32k * 0.12, 32k * 0.12, and 32k * 0.05 (last 3 years of the depreciation).

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