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anonymous
 4 years ago
Multiple Choice:
A hightech company purchases a new computing system whose initial value is V. The system will depreciate at the rate f = f(t) and will incur maintenance costs at the rate g = g(t), where t is the time measured in months. The company wants to determine the optimal time to replace the system.
anonymous
 4 years ago
Multiple Choice: A hightech company purchases a new computing system whose initial value is V. The system will depreciate at the rate f = f(t) and will incur maintenance costs at the rate g = g(t), where t is the time measured in months. The company wants to determine the optimal time to replace the system.

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anonymous
 4 years ago
Best ResponseYou've already chosen the best response.0Anyone? I really need help in this one

campbell_st
 4 years ago
Best ResponseYou've already chosen the best response.1well the depreciation will be something like \[D=v(1  f)^t\] V= initial value and f= rate of depreciation t = number of months... so if V = $10000 and f = 5% per month... the After 1 month the value is D = 10000 x (10.05) of 10000x0.95... After 10 months D = 10000 x(10.05)^10 the optimum will be the point(s) of intersection of Maintenance costs and and Depreciation In the graph below I've assumed maintenance is linear dw:1327794673018:dw

anonymous
 4 years ago
Best ResponseYou've already chosen the best response.0I have to submit this in 15 min, any further help would be greatly appreciated

campbell_st
 4 years ago
Best ResponseYou've already chosen the best response.1\[V timesf(t) = V \times(V/17  (Vt)/578)\] then since \[V = Vx(v/17  (Vt)/578)\] solving \[V/17 = Vt/578\] Gives t = 34
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