Answer: A high-tech company purchases a new computing system whose initial value is

Chapter 5, Problem 80

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A high-tech company purchases a new computing system whose initial value is . The system will depreciate at the rate and will accumulate maintenance costs at the f ft V CT fT C t T C C Ct 1 t A y t 0 fs ds C Ct t xt 0 fs ds T A f f t t rate , where is the time measured in months. The com pany wants to determine the optimal time to replace the system. (a) Let Show that the critical numbers of occur at the num bers where . (b) Suppose that and Determine the length of time for the total deprecia tion to equal the initial value . (c) Determine the absolute minimum of on . (d) Sketch the graphs of and in the same coordinate system, and verify the result in part (a) in this case. t tt t Ct 1 t y

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