200 times 40000 is 8000000.
200
x 40000
---------------
8000000
Answer:
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Step-by-step explanation:
Answer:
The value of Car B will become greater than the value of car A during the fifth year.
Step-by-step explanation:
Note: See the attached excel file for calculation of beginning and ending values of Cars A and B.
In the attached excel file, the following are used:
Annual Depreciation expense of Car A = Initial value of Car A * Depreciates rate of Car A = 30,000 * 20% = 6,000
Annual Depreciation expense of Car B from Year 1 to Year 6 = Initial value of Car B * Depreciates rate of Car B = 20,000 * 15% = 3,000
Annual Depreciation expense of Car B in Year 7 = Beginning value of Car B in Year 7 = 2,000
Conclusion
Since the 8,000 Beginning value of Car B in Year 5 is greater than the 6,000 Beginning value of Car A in Year 5, it therefore implies that the value Car B becomes greater than the value of car A during the fifth year.
Look at intersecting points of line on x- and y-axis.
The points would be: (8,0) & (0,4)
formula of slope = (y2-y1) / (x2-x1)
(4-0)/(0-8) = -4/8 = -1/2.