What is the value of the truck initially, Ao, and how would the graph change if the depreciation rate was 15% per year?

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asked Jul 17, 2018 69.0k views

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Ewomack · Answer 1 · 2018-07-21T05:44:18+0000

no. of years = y, cost price=c
value function = V(y)= c*[(0.85)^y]

as y increases, V decreases exponentially.

at y=0 , V=c.

so, the graph looks like [y,V(y)] shown in attachment

What is the value of the truck initially, Ao, and how would the graph change if the-example-1

What is the value of the truck initially, Ao, and how would the graph change if the depreciation rate was 15% per year?

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