Asked by Ann
A machine worth $ 11000 new and having a scrap value of $ 10995.6 is to be depreciated over a 4.4 -year life.
Find the function that describes straight line depreciation for this situation. At what time will the machine be worth $ 10997.8 according to this model?
So I know that the straight line depreciation is A(t) = -4.4t + 11,000. Is the machine worth $10997.8 when t = 0.5 years? That's what I keep on getting, but the other website keeps on saying it's wrong...
Find the function that describes straight line depreciation for this situation. At what time will the machine be worth $ 10997.8 according to this model?
So I know that the straight line depreciation is A(t) = -4.4t + 11,000. Is the machine worth $10997.8 when t = 0.5 years? That's what I keep on getting, but the other website keeps on saying it's wrong...
Answers
Answered by
Steve
We want to find when it has depreciated by only $2.20? That does not seem like a reasonable question.
Must be that if it's worth $11000 new and has a scrap (fully depreciated value of $10995.6, we are only depreciating $5.40. Seems weird.
In any case, if that's true, then
A(t) = 11000 - (11000-10995.60)*t/4.4
to find when A = 10997.8, we just solve for t to get t=2.2 years.
Somehow the numbers don't make sense to have such a small depreciable value on such a large asset.
Of course, I could be all wrong.
Must be that if it's worth $11000 new and has a scrap (fully depreciated value of $10995.6, we are only depreciating $5.40. Seems weird.
In any case, if that's true, then
A(t) = 11000 - (11000-10995.60)*t/4.4
to find when A = 10997.8, we just solve for t to get t=2.2 years.
Somehow the numbers don't make sense to have such a small depreciable value on such a large asset.
Of course, I could be all wrong.
Answered by
Ann
Wait, Steve, I think that what you wrote:
A(t) = 11000 - (11000-10995.60)*t/4.4
is equivalent to what I wrote:
A(t) = -4.4t + 11,000
but when I solve mine, why do I keep on getting 0.5 instead of 2.2?
A(t) = 11000 - (11000-10995.60)*t/4.4
is equivalent to what I wrote:
A(t) = -4.4t + 11,000
but when I solve mine, why do I keep on getting 0.5 instead of 2.2?
Answered by
Steve
I'm dividing by 4.4 - you are multiplying.
As t goes from 0 to 4.4 years, the depreciation goes from 0 to the full amount.
As t goes from 0 to 4.4 years, the depreciation goes from 0 to the full amount.
Answered by
Ann
Oh, ok, so it's not equivalent.
I get it now. It is 2.2. Thanks!
I get it now. It is 2.2. Thanks!
Answered by
Steve
An easy way to check is to note that the $2.20 is half of the $4.40 being depreciated, so it took half of the depreciation period of 4.4 years: 2.2 years.
Odd that the asset life is the same as the amount being depreciated. Bad example, imho.
Odd that the asset life is the same as the amount being depreciated. Bad example, imho.
There are no AI answers yet. The ability to request AI answers is coming soon!
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.