Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The salvage value of a piece of machinery owned for x years is S(X)=150,000-900x. The purchase price was $175,000 and the operating costs are O(X)=8x+100.
The salvage value of a piece of machinery owned for x years is S(X)=150,000-900x. The purchase price was $175,000 and the operating costs are O(X)=8x+100. (a.) Create the function to determine the optium number of years of ownership, x, that will minimize the sum of average capital cost and operating costs. b.) Find the number of years, x, that will minimize this cost.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started