Cost of machine = Rs. 15625 It will depreciate each year by 20% ∴ Cost of machine at the end of first year = Rs. $\left(15625-\frac{15625\times 20}{100}\right)$ = Rs. (15625 – 3125) = Rs. 12500. Cost of machine at the end of second year = Rs. $\left(12500-\frac{12500\times 20}{100}\right)$ = Rs. [12500 – 2500] = Rs. 10000 Cost of machine at the end of third year = Rs. $\left(10000-\frac{10000\times 20}{100}\right)$ = Rs. [10000 – 2000] = Rs. 8000 Cost of machine at the end of fourth year = Rs. $\left(8000-\frac{8000\times 20}{100}\right)$ = Rs. [8000 – 1600] = Rs. 6400 Cost of machine at the end of fifth year = Rs. $\left(6400-\frac{6400\times 20}{100}\right)$ = Rs. [6400 – 1280] = Rs. 5120.