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

Question 3

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

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