Question

(1 point) This problem is similar to one in your textbook. Suppose that a company needs...

(1 point) This problem is similar to one in your textbook.

Suppose that a company needs new equipment, and that the machinery in question earns the company revenue at a continuous rate of 58000t+42000 dollars per year during the first six months of operation, and at the continuous rate of $71000 per year after the first six months. The cost of the machine is $175000. The interest rate is 6.75% per year, compounded continuously.


a) Find the present value of the revenue earned by the machine during the first year of operation. Round your answer to the nearest cent.
Value: $



b) Determine how long it will take for the machine to pay for itself; that is, how long until the present value of the revenue is equal to the cost of the machine. Round your answer to the nearest hundredth.
Years:

Math   Calculus   
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