The graphs below have the same shape. What is the equation of the red graph?
1 answer:
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Answer:
ACV=$4,500
Step-by-step explanation:
We have that the actual cash value (ACV) is defined as:
Where:
actual cash value
replacement cost or purchase price of the item
expected life of the item
current life of the item
Then we have R=$6,000, C=5years, and to find the expected life of the item we can use the depreciating of the roof, then if the roof is depreciating $200 each year we just need to divide $4,000 by $200 to find the expected life of the roof:
Then the espected life of the roof is 20 years, with this result we have all the data, then:
Then the ACV is $4,500