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A company recently found out that the new mechanical equipment it needs currently costs $42,000....

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Basic Math

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A company recently found out that the new mechanical equipment it needs currently costs $42,000. In 10 years it will be out of date and thus can then be scrapped for $6,000. Create a line that shows the depreciation relationship of the cost (C) over time (t) in years. Graph the line. What is the slop of the line? What are the x and y intercepts of your line and what do they represent? How much would it be worth if it they decided to get rid of if early, after 7 years?

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