Suppose a company wants to introduce a new machine that will produce a rate of annual savings (in dollars) given by the function
a. For how many years will it be profitable to use this new machine?
The number of profitable years is 6
b. What are the net total savings during the first year of use of the machine?
The net total savings during the first year of use of the machine is
c. What are the net total savings over the entire period of use of the machine?
The net total savings over the entire period of use of the machine is
Final Answer: The number of profitable years is
Step 1 :Define the savings rate function as
Step 2 :Find the number of profitable years by solving for
Step 3 :Find the net total savings during the first year by subtracting the cost from the savings for the first year, i.e.,
Step 4 :Find the net total savings over the entire period of use by subtracting the total cost from the total savings over the entire period of use, i.e.,
Step 5 :Final Answer: The number of profitable years is