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My problem is related to F5 December 2008 question 1 part C – Pace Company.
In part C, the 2 last sentences stated that:
– “Store S requires an investment of $100,000 at the start of its first year of trading.”
– “PC depreciates non-current assets at the rate of 25% of cost. No residual value is expected on these assets.”I checked the answer and it said:
2009 2010 2011 2012
Investment 100,000 75,000 50,000 25,000Could you explain it to me: how to calculate the figure of investment in 2010, 2011 and 2012?
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