Question
You have a new product that you want to bring to market, so you are looking for investors. Mark Zuckerberg offers to fund your company
You have a new product that you want to bring to market, so you are looking for investors. Mark Zuckerberg offers to fund your company for 20% of your total revenue. Jeff Bezos offers to do it for 30% of all revenue up to 5 million dollars, but only 10% of any revenue over 5 million. Let f1(t) be amount of money you would pay Zuckerberg on t dollars in revenue. Let f2 (t) be amount of money you would pay Bezos.
a.) Fill in the table using millions of dollars (so you would write $100,000 as 0.1 million.).
Revenue, t | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
Zuckerberg, f1 | 0 | ||||||||
Bezos | 0 |
b.) Find a formula for f1(t)
c.) Find a piecewise formula for f2(t)
d.) How much revenue must you make for Bezos option to become better for you?
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