Determine the largest value of n for which the present worth


Problem

A company invests $1,350,000 in a product that yields discrete end-of-year revenues with the following functional form: f(t) = $600,000(0.9)t , t = 1, 2, ..., n, where t is measured in years. It incurs continuous costs having the following functional form: g(t) = $150,000, 0 < t < n, where t is measured in years. Based on a discount rate of 10% compounded continuously, determine the largest value of n for which the present worth of the overall investment is equal to or greater than zero.

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Operation Management: Determine the largest value of n for which the present worth
Reference No:- TGS03305418

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