Depreciate 6413

The company bought a new machine for CZK 350,000. Due to wear and tear, its price will decrease by 10% annually. The machine can be written off if its price drops below 30% due to wear and tear. Determine how many years the company can depreciate the machine.

Correct answer:

n =  12

Step-by-step explanation:

q=110010=1001 10010010=10010010010=10010010=10090=109=0.9 qn=0.30 nlnq=ln0.30 n1=ln0.30/lnq=ln0.30/ln(109)=ln0.30/ln0.911.4272  n=n1=11.4272=12



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