The value of a piece of industrial equipment depreciates after it is purchased. Suppose that the depreciation follows an exponential decay model. The value of the equipment at the end of 9 years is $25,000 and its value has been decreasing at the rate of 6.5% per year. Find the equation for the value of the industrial equipment. Group of answer choices

can i get the link to the assignment?

step-by-step explanation:

required rate of return = 0.166 = 16.6%

step-by-step explanation:

under the capital asset pricing model (capm), the required or expected rate of return for a particular security or asset is given using the formula:

required rate of return = risk-free rate + beta*(market risk premium)

we are given that;

risk-free rate = 4% = 0.04

beta = 1.4

market risk premium = 9% = 0.09

we simply plug these values into the above formula;

required rate of return = 0.04 + 1.4*(0.09)

required rate of return = 0.04 + 0.126

required rate of return = 0.166 = 16.6%

m

step-by-step explanation: