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thank you very much 4. Suppose you want to estimate the salvage value of an asset twenty years after purchase. You feel that depreciation is
thank you very much 4. Suppose you want to estimate the salvage value of an asset twenty years after purchase. You feel that depreciation is best represented by a rate of loss with constant value over time. You know the purchase price of the asset was $200,000 four years ago, and an estimate of its current salvage value is $163,100. a. How much value is lost each year? b. What is the value of the asset twenty years after purchase? c. What depreciation rate will result in the same value as in part b) if you instead believe that depreciation is best represented by a rate of loss with constant proportion
thank you very much
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