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:

Companionate Love

The deep affectionate attachment we feel for those with whom our lives are intertwined.

Passionate Feelings

Intense emotions or strong feelings of enthusiasm or desire, often associated with love or other deep attachments.

Mere Exposure Effect

A psychological phenomenon where people tend to develop a preference for things simply because they are familiar with them.

Passionate Love

An aroused state of intense positive absorption in another, usually present at the beginning of a romantic relationship.