Respond to -When things depreciate it means they've lost value over time. A well known example of depreciation would be cars. When a car is driven off the lot it immediately depreciates by ten percent. However, cars can depreciate at different rates depending on use, maintenance, modifications, and location. For example a car that resides in Michigan will depreciate faster than a car in Florida, due to the weather conditions in Michigan and the salt used to combat these conditions causing vehicles and equipment to rust at an accelerated rate. Think about a used car dealership, most vehicles they have bought already have a depreciated value. The longer they sit the less value they have. Before management decides whether or not they will buy the vehicle they need to calculate an estimate of how fast it can be sold. Doing these calculations will help them to decide if making the purchase will be profitable for the business. To make sure that all financial details are known and tracked, I would start with budgeting and expense tracking along with keeping track of inventory and knowing the amount of risk involved with purchases