Circle Farms wants to develop a replacement policy for its 2-year-old tractor over the next 5 years.
Question:
Circle Farms wants to develop a replacement policy for its 2-year-old tractor over the next 5 years. A tractor must be kept in service for at least 3 years, but must be disposed of after 5 years. The current purchase price of a tractor is $40,000 and increases by 10% a year. The salvage value of a 1-year-old tractor is $30,000 and decreases by 10% a year. The current annual operating cost of the tractor is $1300 but is expected to increase by 10% a year.
(a) Formulate the problem as a shortest-route problem.
(b) Develop the associated recursive equation.
(c) Determine the optimal replacement policy of the tractor over the next 5 years.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (5 reviews)
Income from mowing is constant hence not included in the ...View the full answer
Answered By
Nicole omwa
Being a highly skilled tutor with at least 5 years of tutoring experience in different areas, I learned how to help diverse learners in writing drafts of research papers, actual research papers and locate credible sources. My assurance is built upon my varied knowledge of a variety of subjects. Furthermore, my involvement and interaction with numerous learners of all levels has allowed me to understand my clients' specific demands. Ultimately, this has aided me in being a better coach to learners to better their grades. Essentially, my responsibilities as a tutor would include:
Teaching abilities that assist pupils in enhancing their academic performance
Personal interaction with learners to make them understand abstract concepts
Inducing new skills and knowledge into their academic journeys
Fostering individual reflection, and independent and critical thinking
Editing and proofreading
Because I am constantly available to respond to your queries, you may decide to rely on me whenever you require my assistance. As an assurance, my knowledge skills and expertise enable me to quickly assist learners with different academic challenges in areas with difficulty in understanding. Ultimately, I believe that I am a reliable tutor concerned about my learner's needs and interests to solve their urgent projects. My purpose is always to assist them in comprehending abstract schoolwork and mastering their subjects. I also understand that plagiarism is a severe offense and has serious ramifications. Owing to this, I always make it a point to educate learners on the numerous strategies to have uniquely unique solutions. I am familiar with the following formatting styles:
MLA
APA
Harvard
Chicago
IEEE
Communication is always the key in every interaction with my learners. Hence, I provide timely communication about the progress of assigned projects. As a result, I make sure that I maintain excellent communication with all of my clients. I can engage with all of my customers more effectively, assisting them with their unique academic demands. Furthermore, I attempt to establish a solid working relationship with my leaners I have exceptional abilities in the below areas;
Sociology
History
Nursing
Psychology
Literature
Health and Medicine
Chemistry
Biology
Management
Marketing
Business
Earth Science
Environmental Studies
Education
Being a teacher who aces in diverse fields, I provide various academic tasks, which include;
Academic Reports
Movie Reviews
Literature Reviews
Annotated bibliographies
Lab reports
Discussion posts
Dissertations
Case study analyses
Research proposals
Argumentative Essays
I guarantee you high-quality Papers!!!!!
5.00+
17+ Reviews
32+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
The admissions office at State University wants to develop a planning model for next years entering freshman class. The university has 4500 available openings for freshman. Tuition is $8600 for an...
-
The admissions office at State University wants to develop a planning model for next years entering freshman class. The university has 4,500 available openings for freshmen. Tuition is $8,600 for an...
-
A company wants to develop a simple linear regression model for one of its products. Use the following 12 periods of historical data to develop the regression equation and use it to forecast the next...
-
After graduating from college in May 2018, Ryan Crews started his career in finance at the W&T Corporation, a small- to medium-sized warehouse distributor in Nashville, Tennessee. The company was...
-
Calculate the value for the test statistic, x2_, for each of these situations: . : dr-20. n-15,S-17.8 b, H0: 2-30, n-18, s-5.7 c. Ho: 42, 25,s 37.8 d. H,:12, 37, s 163
-
Lee begins trading on 1 January 2020 preparing accounts to 31 December each year. His adjusted trading profit for the year to 31 December 2020 (before capital allowances) is 21,000 and capital...
-
How is an implied volatility calculated?
-
What makes POS systems different from revenue cycles of manufacturing firms?
-
Please give me a full business plan for marketing agency that called Marketing Masterminds located in London Ontario . They take care of small businesses' digital presence and promoting them on...
-
Joe loves to eat out in area restaurants. His favorite foods are Mexican, Italian, Chinese, and Thai. On the average, Joe pays $10 for a Mexican meal, $15 for an Italian meal, $9 for a Chinese meal,...
-
A farmer owns a herd of K sheep now. At the end of each year, the farmer decides how many to sell or keep. The profit from selling a sheep in year i is p i . The sheep kept at the star of year i will...
-
GECO is contracted for the next 4 years to supply four aircraft engines per year. Available production capacity and production costs vary from year to year. GECO can produce five engines in year 1,...
-
Given a curve C: r(t), find a tangent vector r'(t), a unit tangent vector u'(t), and the tangent of C at P. Sketch curve and tangent. r(t) = [cos t, sin t, 9t], P: (1, 0, 18)
-
A project manager has been asked to provide an explanation regarding a $2,220 favorable material variance on a playground equipment project. After further analysis, the project manager was able to...
-
1. Consider the following grammar G EE+E E-E E (E) E number (a) Is G LL(1)? Why? (b) Rewrite G to G' so that G' is LL(1).
-
An analyst obtained predictions using exponential smoothing, see the table below. Year Month Sales ES forecast 2020 10 $1,450.00 $1,450.00 2020 11 $2,390.00 2020 12 $1,980.00 2021 1 $2,077.00 A 2021...
-
Last month McAlister Company had a $60,000 loss on sales of $300,000. Fixed costs are $120,000 a month. Answer the following questions: a. What was the contribution margin percentage? b. What monthly...
-
Kara Ries, Tammy Bax, and Joe Thomas invested $50,000, $66,000, and $74,000, respectively, in a partnership. During its first calendar year, the firm earned $346,200. Prepare the entry to close the...
-
Suppose you have an income of $24 and the only two goods you consume are apples (x1) and peaches (x2). The price of apples is $4 and the price of peaches is $3. A. Suppose that your optimal...
-
During 2012, Cheng Book Store paid $483,000 for land and built a store in Georgetown. Prior to construction, the city of Georgetown charged Cheng $1,300 for a building permit, which Cheng paid. Cheng...
-
In an LP in which there are several unrestricted variables, a transformation of the type
-
Consider the following LP: Maximize z = 2x1 + 3x2 subject to X1 + 3x2 6 3x1 + 2x2 6 X1, x2 0 (a) Express the problem in equation form. (b) Determine all the basic solutions of the problem, and...
-
Determine the optimum solution for each of the following LPs by enumerating all the basic solutions. (a) Maximize z = 2x1 - 4x2 + 5x3 - 6x4 Subject to x1 + 4x2 - 2x3 + 8x4 2 - x1 + 2x2 + 3x3 + 4x4 ...
-
Thanks Timothy for your input and discussing the concept of the risk-return trade-off. Under what specific circumstances can risk magnify a company's earnings in a positive way? Is it also possible...
-
Should articles (such as the) and prepositions (such as on) be capitalized when they appear in titles? Explain briefly how and why ? What is the reason.
-
Description Amount Explanation Sales 200,000 Cost of goods sold 40,000 25,000 fixed + 18,000 variable Operating expenses 33,000 19,000 fixed + 13,000 variable Compute operating income using the...
Study smarter with the SolutionInn App