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Straight-line depreciation is a method of calculating an asset’s value by subtracting its salvage value from its acquisition or purchase price divided by the estimated useful life of the asset. suppose a manufacturing robot cost $1.5 million in 2005 and is sold in 2010 for $50,000. what is the linear equation representing the value of the robot?

Answer :

Aliwohaish12
1500000-50000/5years=290000

Answer:

Linear equation is V(t) = 1500 - 290t

Step-by-step explanation:

To find the linear equation representing the value of the robot we will calculate per year depreciation in the cost of the robot.

Rate of depreciation = [tex]\frac{\text{(Manufacturing cost in 2005-selling price in 2010)}}{5}[/tex]

                                 = [tex]\frac{[(1.5)(10^{6})-50000]}{5}[/tex]

                                 = [tex]\frac{(1500000-50000)}{5}[/tex]

                                 = [tex]\frac{1450000}{5}=290000[/tex]

If depreciation is represented by V(t) (in $000) then equation will be

V(t) = 1500 - 290t

                               

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