David C. answered • 02/28/18
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A machine was bought for $15,000. After two years the machine was worth $12,000. If the depreciation of the machine is a linear relationship, when will the machine be worthless?
Original Cost = $15000
Cost after 2 years = $12000
Avg Depreciation per year
= ($15000-$12000)/2 years
= $3000/2years
= $1500/year
How many Years
= $15,000/($1500/year)
= 10 years
