A small business has just invested in a new piece of equipment. The business's accountant estimates that the value of the equipment will decrease over time at a constant rate. Based on this assumption, the accountant properly estimates the value of the equipment 3 years afterward to be $
X, 6 years afterward to be $
Y, and 8 years afterward to be, for the first time, $0.
Select values for
X and for
Y that are jointly consistent with the given information. Make only two selections, one in each column.
assume constant amount decrease every year to be x .
so after 3 years gap (FROM YEAR 3 TO 6) , amount = X-3x = Y.
amount after 2 years gap ( FROM YEAR 6 TO 8) -> Y - 2x = 0.