THE PROJECT MANAGER OF A PROJECT MUST BUY A LARGE PIECE OF EQUIPME...

38. The project manager of a project must buy a large piece of equipmentcosting $1,543,256. He meets with the accounting department repre-sentative to the project team and reviews the different depreciationmethods that can be used to depreciate the equipment over the usefullife of the equipment. Which of the following is an accelerated deprecia-tion method?a. Multiplication of the years’ digitsb. Straight linec. Sum of the years’ digitsd. Average deflationThe following situation refers to questions 39, 40, 41, and 42.In a manufacturing facility that makes electronic widgets, the main widgetmaking machine is getting old and a project is formed to consider the re-placement of this machine. The average cost of the operations performed onthis machine for making a widget is $5.00 per unit. A new machine can bepurchased for $50,000 that will perform these operations much morequickly and with less scrap and rework for an average cost of $3.00 per unit.An alternative machine is even faster than the first machine considered andwill perform the same operations for $2.00 per unit. However, this machinewill cost $75,000. The company manufactures 1,000 widgets each month.