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Daniel owns a car that cost him $175 000,00. He wishes to replace it with a similar model in four years' time. If depreciation on the car is 14,2% p.a. on the reducing balance method, and inflation is at 4,9% p.a., calculate

1. The expected cost of the similar model in four years' time

2. The Expected book value of the car in four years' time

3. The amount of money Daniel is expecting to have as a deposit if he sells the old car in four years' time​

Sagot :

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