Question
A small business buys a computer for $4000. After 4 years, the value of the computer is expected to be $2000. For accounting purposes,
A small business buys a computer for $4000. After 4 years, the value of the computer is expected to be $2000. For accounting purposes, the business uses linear depreciation to assess the value of the computer at a given time. 1. How do you interpret the term linear depreciation in a mathematical way? 2. What is the depreciation value of the computer per year? 3. Write an equation for the total value of the computer as a function of time passed since the initial purchase (in years). 4. How many years will it take for the computer to decrease to a value of $500?
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International financial management
Authors: Jeff Madura
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