There are two methods of assessing the value of a wasting asset. The first assumes that it

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There are two methods of assessing the value of a wasting asset. The first assumes that it decreases each year by a fixed amount; the second assumes that it depreciates by a fixed percentage. A piece of equipment costs £1000 and has a ‘lifespan’ of six years after which its scrap value is £100. Estimate the value of the equipment by both methods for the intervening years.

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