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Help With DDB Depreciation.
Hello. I am working on a capital budgeting problem and I am trying to figure out how to get depreciation values by using DDB (DoubleDecliningBalance) Depreciation. Actually, my professor gave me the values, but I am trying to figure out how to work it out.
Product costs 50,000 Salvage value: 10,000 Cash flows: Year 1: 10,000 Year 2: 12,000 Year 3: 12,000 Year 4: 12,000 Year 5: 10,000 Here is what I have done so far: I have gotten the depreciation rate by using the formula (1/life) * 2 So, (1/5) * 2 = 40% ddb Year 1: .40 * 50,000 = 20,000 Year 2: .40 * (50,00020,000) = 12,000 Year 3: .40 * (50,00032,000) = 7,200 I am stuck on Year 4.. The depreciation value I was given by my professor is 800, but when I work it out.. .40 * (50,00039,200) = 4320 Can anyone explain to me what I am doing wrong? Also, why is the depreciation 0 in the last year (year 5)? If anyone can offer me some help, I would really appreciate it! Thanks. 
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