Question 1064052: A manufacturer buys a new machine costing $120000 dollars. It is estimated that the machine has a useful lifetime of ten years and a salvage value of 4000 dollars at that time. Assume the value of the machine varies linearly during this time. Find a formula for the value of the machine after t years, where 0<=t<=10. Find the value of the machine after 8 years.
Answer by addingup(3677)   (Show Source):
You can put this solution on YOUR website! 1) Purchase cost: 120,000
2) Estimated salvage value: 4000
3) Depreciable asset cost: 116,000
4) Useful life: 10 years = depreciation rate of 10% per year
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116,000-((116,000/10)*t) where 0<=t<=10
116,000-((116,000/10)*8) = 23,200 this is the value after 8 years
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