Last one for today...
As the financial consultant to a classic auto dealership, you estimate that the total value (in dollars) of its collection of 1959 Chevrolets and Fords is given by the formula
v = 303,000 + 1,020t2 (t ¡Ý 5)
where t is the number of years from now. You anticipate a continuous inflation rate of 5% per year, so that the discounted (present) value of an item that will be worth $v in t years' time is
p = ve−0.05t.
When would you advise the dealership to sell the vehicles to maximize their discounted value? (Round your answer to one decimal place.)
1 years from now
1 answer
Nevermind i figured it out. 30.1 years to maximize value
1 answer