Bob Owns a Watch Repair Shop $c ( x ) = 2 x ^ { 2 } - 156 x + 88$

question 82

Multiple Choice

Bob owns a watch repair shop. He has found that the cost of operating his shop is given by $c ( x ) = 2 x ^ { 2 } - 156 x + 88$ , where c is cost and x is the number of watches repaired. How many watches must he repair to have the lowest cost?

• A) 44 watches
• B) 88 watches
• C) 20 watches
• D) 39 watches

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Definitions:

Net Present Value (NPV)

A financial metric that calculates the value of a projected investment by estimating the present value of its future cash flows minus the initial investment cost.

Capital Budgeting

The process by which a business evaluates and plans for the acquisition and investment of long-term assets.

Multiple Internal Rates of Return

Occurs when a project or investment has more than one IRR due to unusual cash flow patterns.

Mutually Exclusive Projects

Mutually exclusive projects are investment decisions where the acceptance of one project results in the rejection of another.