The computer will be valued at £79.63 after two years.
After the first year, the computer will be worth:
= Cost x ( 1 - rate of depreciation)
= 650 x ( 1 - 65%)
= 650 x 35%
= £227.50
After the second year, the value would be:
= Value at end of first year x (1 - depreciation rate)
= 227.50 x ( 1 - 65%)
= 227.50 x 35%
= £79.63
In conclusion, the computer would be worth £79.63 after 2 years.
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