SOLUTION: (a) Suppose that a company has just purchased a new machine for its manufacturing facility for $120,000. The company chooses to depreciate the machine using the straight-line metho

Question 691081: (a) Suppose that a company has just purchased a new machine for its manufacturing facility for $120,000. The company chooses to depreciate the machine using the straight-line method over 10 years.
(i) Write a linear model that expresses the book value V of the machine as a function of its age x.
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
(a) Suppose that a company has just purchased a new machine for its manufacturing facility for $120,000. The company chooses to depreciate the machine using the straight-line method over 10 years.
(i) Write a linear model that expresses the book value V of the machine as a function of its age x.
----
V(x) = 120,000 - (x/10)120,000
----
V(x) = -12000x + 120,000 for x = 0,1,2,...10
===========================
Cheers,
Stan H.
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