Cost of asset $10,000 Residual value $1,000 Years of project (economic life) 5

Depreciation Amount = ($10,000 - $1,000) / 5 = $1,800 per year

EXHIBIT 1Information on the Plywood PressesNakoi DakotaOutput per day square feet 6000 7000Days used each year 240 240Market price per square foot of plywood 180180180Raw materials of sales 70 70Annu

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