A Bin Activator Has an Initial Cost of $34,000 and a Salvage

question 1

Essay

A bin activator has an initial cost of $34,000 and a salvage value described by
S = 34,000 - 3300k, where k is the number of years since the bin activator was purchased. The net annual revenue is estimated by R = 5000 + 600k. The equipment will have a maximum useful life of 5 years. If the company's MARR is 4% per year, when is the best time to abandon the equipment?

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Definitions:

Increase

A rise or growth in quantity, size, intensity, or extent of a particular object or phenomenon.

Modernization Theory

is a sociological theory that looks at the processes through which societies move from traditional or less developed institutions to those characteristic of more developed societies.

Functionalism

A theoretical perspective in sociology that views society as a complex system whose parts work together to promote solidarity and stability, focusing on the social functions of different structures.

Consistent

Refers to something that is characterized by staying the same over time, not changing or varying.