A company purchases a computer system for $20000. The following graph shows the depreciation of the computer system over the five years period. How much is the rate of depreciation per year?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A company purchases a computer system for
$20000. The following graph shows the
depreciation of the computer system over the five
years period.
How much is the rate of depreciation per year?
VA
20000
6000
0 1 2
a. $20000/year
b. $6000/year
C.
14% per year
d. $2800/year
3
5
Transcribed Image Text:A company purchases a computer system for $20000. The following graph shows the depreciation of the computer system over the five years period. How much is the rate of depreciation per year? VA 20000 6000 0 1 2 a. $20000/year b. $6000/year C. 14% per year d. $2800/year 3 5
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