LINEAR DEPRECIATION A manufacturer buys $20,000 worth of machinery that depreciates linearly so that its trade-in value after 10 years will be $1,000.
a. Express the value of the machinery as a function of its age and draw the graph.
b. Compute the value of the machinery after 4 years.
c. When does the machinery become worthless? The manufacturer might not wait this long to dispose of the machinery. Discuss the issues the manufacturer may consider in deciding when to sell.
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