A Certain Piece of Machinery Was Purchased 4 Year(s) Ago

question 45

Multiple Choice

A certain piece of machinery was purchased 4 year(s) ago by Garland Mills for $400,000. Its present resale value is $256,000. Assuming that the machine's resale value decreases exponentially, what will it be 2 year(s) from now?

• A) The resale value of the machinery will be $204,789
• B) The resale value of the machinery will be $204,911
• C) The resale value of the machinery will be $204,800
• D) The resale value of the machinery will be $203,689