A person bought a car for $21,011. After 3 years, the car was worth $12,003. Assume that the price is decreasing according to the continuous exponential decay model PP.a. Find the annual depreciation rate, r, to the nearest tenth of a percent.b. Find the value of the car after 5 years to the nearest hundred dollars.a. What is the annual depreciation rate?(Do not round until the final answer. Then round to one decimal place as needed.)b. What is the value of the car after 5 years?(Round to the nearest hundred dollars as needed.)

Information provided Purchase price of car P0= $21,011 Price after 3 years "P" =$12003 Number of…

Answered: A person bought a car for $21,011.…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter10: Capital Budgeting: Decision Criteria And Real Option

Section: Chapter Questions

Problem 3P

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Similar questions

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1. You bought a new car for $42000. Assume the value of the car depreciates by 17% each year. complete the table Age of the Car in years Calculation Value 0 N/A 42000 1 42000*0.83 2 3 4 ... N/A N/A 10 b. Use the table to find a pattern and develop a formula to model the V= value of the car, after n years. c. linear or not linear?
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A company buys a machine for $180,000 that has an expected life of nine years and no salvage value. The company expects an annual net income (after taxes of 30%) of $8,550. What is the accounting rate of return? a. 4.75% c. 2.85% e. 6.65% b. 42.75% d. 9.50%
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It is determined that the value of a piece of machinery declines exponentially. A machine that was purchased 3 years ago for $74000 is worth $42000 today. What will be the value of the machine 6 years from now? Round any intermediate calculations to at least four decimal places, and round your answer to the nearest cent.

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