We have a value function of a machine at the end of the year t that is:
[tex]V=C(1-r)^t[/tex]
We know that C = 1038 and r = 0.28.
We have to calcula the value of the machine after 4 years (t = 4).
Then, we replace the parameters with their values and calculate V as:
[tex]\begin{gathered} V(t)=C(1-r)^t \\ V(4)=1038\cdot(1-0.28)^4 \\ V(4)=1038\cdot0.72^4 \\ V(4)=1038\cdot0.26873856 \\ V(4)\approx278.95 \end{gathered}[/tex]
Answer: the value is $278.95.
