Does anyone have any idea how to explain this please Solutio


Does anyone have any idea how to explain this please ?

Solution

Intial cost of computer = $ 3300 i.e. at t = 0 yrs

After 4yrs expected value is $200

a) We can model depreciation by straight line

Two points we have : ( 0, 3300) and ( 4, 200)

slope = (200 -3300)/(4 -0) = -775

So, V(t) = 3300 - 775*t

Second graph is for the equation

b) V interecpt shows the intial value of computer

c) Slope of graph shows rate of depreciation

d) Depreciated value after 3yrs

V(3) =3300 - 775*3 = $ 975

 Does anyone have any idea how to explain this please ?SolutionIntial cost of computer = $ 3300 i.e. at t = 0 yrs After 4yrs expected value is $200 a) We can mo

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