14 When a machine is t years old, it earns revenue at a rate of et dollars...
Question:
14 When a machine is t years old, it earns revenue at a rate of et dollars per year. After t years of use, the machine can be sold for
t 1
1
dollars.
a When should the machine be sold to maximize total revenue?
b If revenue is discounted continuously (so that $1 of revenue received t years from now is equivalent to ert dollars of revenue received now, how would the answer in part
(a) change?
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Related Book For 
Operations Research Applications And Algorithms
ISBN: 9780534380588
4th Edition
Authors: Wayne L. Winston
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