A high-tech company purchases a new computing system whose initial value is V. The system will depreciate

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A high-tech company purchases a new computing system whose initial value is V. The system will depreciate at the rate f = f (t) and will accumulate maintenance costs at the rate g =g (t), where is the time measured in months. The company wants to determine the optimal time to replace the system.
(a) Let Show that the critical numbers of C occur at the numbers t where C (t) = f (t) + g (t).
(b) Suppose that and

Determine the length of time for the total depreciation D (t) = f(s) to equal the initial value V.
(c) Determine the absolute minimum of on (0, T].
(d) Sketch the graphs of C and f + g in the same coordinate system, and verify the result in part (a) in this case.

C) -[/) + g(0]ds t if 0<ts 30 f) = { 15 450 if t> 30 Vr? g(1) t>0 12,900 Depreciation
Depreciation is an important concept in accounting. By definition, depreciation is the wear and tear in the value of a noncurrent asset over its useful life. In simple words, depreciation is the cost of operating a noncurrent asset producing...
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Accounting Principles Part 1

ISBN: 978-1118306789

6th Canadian edition

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow

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