using the following information in place of that in the book. The machine earns the company revenue at a continuous rate of 50000 t + 35000 dollars per year during the first six months of operation, and at the continuous rate of $60000 per year after the first six months. The cost of the machine is $175000. The interest rate is 7% 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:
1 answer