SOLUTION: The scrap value at the end of its useful life is given by S(n)=C(1-r)^n, Where C is the original cost, n is the useful life of the machine in years, and r is the constant annual pe

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Question 887738: The scrap value at the end of its useful life is given by S(n)=C(1-r)^n, Where C is the original cost, n is the useful life of the machine in years, and r is the constant annual percentage of value lost. Find the scrap value of the original machine. Original Cost: $50,000; Life: 10 years; annual rate of value lost:15%
Answer by stanbon(75887) About Me  (Show Source):
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The scrap value at the end of its useful life is given by S(n)=C(1-r)^n, Where C is the original cost, n is the useful life of the machine in years, and r is the constant annual percentage of value lost. Find the scrap value of the original machine. Original Cost: $50,000; Life: 10 years; annual rate of value lost:15%
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S(10) = 50,000*0.85^10 = $9843.72
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Cheers,
Stan H.
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