Garland Mills purchased a certain piece of machinery 4 years ago for $500,000. Its present resale value is $340,000. Assuming that the machine's resale value decreases exponentially, what will it be 5 years from now? (Round your answer to the nearest dollar.)

The machine's resale value in 5 years from now will be $309,392

Explanation:

Future value = present value*exp (cx)

$340,000 = $500,000*exp (4c)

17/25 = exp (4c)

c = - 0.096

Future value = present value*exp (cx)

= $500,000*exp (-0.096*5)

= $309,391.70

Therefore, The machine's resale value in 5 years from now will be $309,392