Car Depreciation per km

Example 1:
BBP Ltd. purchased a company car which costs $200,000 and it was estimated to have a life span of 250,000 kilometer and had a scrap value of $30,000. Calculate the car depreciation per km.

Answer:
Formula: Depreciation per km = (Cost - Scrap value)/Life span
                                              = (200000-30000)/250000
                                              = $0.68 per km

Example 2:
Calculate the car depreciation per km using the following data:
Purchase price of car (including interest and taxes): $100,000
Estimated Selling Price: $20,000
Approximate Total Driving Distance: 200,000 km

Answer:
Depreciation per km = (100000-20000)/200000 = $0.40
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