Back to the basic model of section 5.1. Suppose that the fixed assets at cost follow the
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Back to the basic model of section 5.1. Suppose that the fixed assets at cost follow the following step function:
Incorporate this function into the model.
Transcribed Image Text:
if Sales <1,200 Fixed Assets at Cost={1,200+ 90% * (Sales – 1,200) 1,200 < Sales <1,400 (1,380+80% * (Sales – 1,400) Sales > 1,400 (100% * Sales
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To incorporate this function into the model we need to use it to calculate the fixed assets at cost ...View the full answer
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