3 100 The marginal profit from producing x widgets is given by P'(x) = 72,600e-0.12x. Suppose it were possible for this firm to make infinitely many widgets. What would its total profit be? 11) Find the accumulated present value of an investment for which there is a perpetual continuous money flow of $21,000 per year. Assume that the interest rate is 3.5% compounded continuously. 12) Find the capitalized cost with co= $375,000, k = 2.5%, and m(t) = $12,000. Round to the nearest dollar. 0 20 5. hp
3 100 The marginal profit from producing x widgets is given by P'(x) = 72,600e-0.12x. Suppose it were possible for this firm to make infinitely many widgets. What would its total profit be? 11) Find the accumulated present value of an investment for which there is a perpetual continuous money flow of $21,000 per year. Assume that the interest rate is 3.5% compounded continuously. 12) Find the capitalized cost with co= $375,000, k = 2.5%, and m(t) = $12,000. Round to the nearest dollar. 0 20 5. hp
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter5: Investment Decisions: Look Ahead And Reason Back
Section: Chapter Questions
Problem 5.2IP
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