A company car is purchased for Rs 23580 and is expected to be driven 95000 miles before being sold.The expected salvage value for the car is Rs 2300.Find the unit depreciation for the car.
PLEASE
To find the unit depreciation for the car, we first need to calculate the total depreciation.
Total depreciation = Cost of car - Salvage value
Total depreciation = Rs 23580 - Rs 2300
Total depreciation = Rs 21280
Next, we need to calculate the unit depreciation.
Unit depreciation = Total depreciation / Total miles driven
Unit depreciation = Rs 21280 / 95000
Unit depreciation = Rs 0.2242 per mile
Therefore, the unit depreciation for the car is Rs 0.2242 per mile.
To find the unit depreciation for the car, we need to determine the total depreciation and then divide it by the total number of miles the car is expected to be driven.
First, we calculate the total depreciation:
Total Depreciation = Cost of the car - Salvage value
Total Depreciation = Rs 23580 - Rs 2300
Total Depreciation = Rs 21,280
Next, we divide the total depreciation by the total number of miles the car is expected to be driven:
Unit Depreciation = Total Depreciation / Miles driven
Unit Depreciation = Rs 21,280 / 95,000
Unit Depreciation ≈ Rs 0.224
Therefore, the unit depreciation for the car is approximately Rs 0.224 per mile.