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Question

Assume a firm purchases equipment for $75,000 and its useful life is expected to be 25 years, with no salvage value. If the firm depreciates the equipment using a “straight line” basis, which expression represents the book value (V) of the equipment as a function of time (t)? A. V=f(t) = 75,000 – 25t

B. V=f(t) = 75000 + 3000t C. V=f(t) = 3000 – 25t D. V = f(t) = 75,000 – 3,000t

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Phyllis Mugure

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