Info

Beg. Book Value

250,000

215,000

187,000

164,600

146,680

182,344

160,875

139,406

117,938

96,469

- Depreciationa

35,000

28,000

22,400

17,920

14,336

21,469

21,469

21,469

21,469

21,469

End Book Value

215,000

187,000

164,600

146,680

182,344

160,875

139,406

117,938

96,469

75,000

aDepreciation is 20% of depreciable value (Remaining book value - Salvage) until year 6. In year 6, we switch to straight line for the remaining depreciable value over the remaining life because it yields a higher depreciation ($11,469). We also depreciate the second investment in year 5 straight line over 5 years.

aDepreciation is 20% of depreciable value (Remaining book value - Salvage) until year 6. In year 6, we switch to straight line for the remaining depreciable value over the remaining life because it yields a higher depreciation ($11,469). We also depreciate the second investment in year 5 straight line over 5 years.

Exhibit 5.4: Cash Flows to Equity from Paper Plant: Aracruz Cellulose
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Lessons From The Intelligent Investor

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