23 August, 19:34
One company buys a new bulldozer for $108250. The company depreciates the bulldozer linearly over its useful life of 16 years. Its salvage value at the end of 16 years is $14650.
A) Express the value of the bulldozer, V, as a function of how many years old it is, t. Make sure to use function notation.
23 August, 20:03
To answer the problem above, we make the assumption first that the depreciation is a straight-line method in order to solve for the depreciation rate.
d = (108250 - 14650) / 16 = 5850
The value of the bulldozer at any time t should be given by the equation,
V = 108250 - 5850t
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» One company buys a new bulldozer for $108250. The company depreciates the bulldozer linearly over its useful life of 16 years. Its salvage value at the end of 16 years is $14650.