Question

What is the value of an asset after 8 years of use if it depreciates from its original value of 500, 000 to its salvage value of 1.5% in 10 years? (Use Straight Line Method) 

Answer 1

The value of an asset after 8 years of use is:

$PV = 500,000×0.985×(1 - 0.8) = 98,500.$