Use the following problem to answer questions 4 and 5 In 201

Use the following problem to answer questions 4 and 5.

In 2010 a company installed a new machine in one of its factories at a cost of $680,000. The
machine is linearly depreciated over 30 years with a scrap value of $80,000

4. Find an expression for the machine value in the t th year of use (0 < t < 30).
a. V(t) = -20,000t + 680,000
b. V(t) = 2,667t + 16,000
c. V(t) = -2,667t + 80,000
d. V(t) = 20,000t

Solution

4) a. V(t) = -20,000t + 680,000   

Per year depreciation = 680000-80000/30 = 20000

Value decreases by 20000 each year.

5) e. $400,000

Substitute t =14 in v(t)

6)

e. C(x) = 3.52x + 24,700, R(x) = 15.30x, P(x) = 11.78x