Question: A large die-casting machine used to make automobile engine blocks is purchased for $2.5 million. For tax purposes, the value of the machine can be

A large die-casting machine used to make automobile engine blocks is purchased for $2.5 million. For tax purposes, the value of the machine can be depreciated by 6.8% of its current value each year.

a. What is the value of the machine after 10 years?

b. After how many years is the value of the machine 10% of its original value?

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