If a machine cost $50,000 initially and is expected to last for 20 years but is worth $60,000 after one year because it is in short supply, an accountant most likely would say that:
the machine's cost for each of its 20 years of existence is $3,000.
the value of the machine will continue to increase 20 percent per year for the next 20 years.
the machine's cost for each of its 20 years of existence is $2,500.
during the first year the machine had no cost; it provided a revenue to the firm.