Write a Cost Function for the Problem

question 29

Multiple Choice

Write a cost function for the problem. Assume that the relationship is linear.
-A moving firm charges a flat fee of $40 plus $35 per hour. Let C(x) be the cost in dollars of using the moving firm for x hours.

• A)C(x)= 40x + 35
• B)C(x)= 35x + 40
• C)C(x)= 35x - 40
• D)C(x)= 40x - 35

---

Definitions:

Net Cash Flows

The difference between cash inflows and outflows in a given period, reflecting the company's overall liquidity position.

Internal Rate of Return

The discount rate at which the net present value of an investment's cash flows equals zero.

Cost of Capital

The rate of return that a company must earn on its investment projects to maintain its market value and attract funds.

Net Present Value

The calculation that compares the value of a dollar today to the value of that same dollar in the future, taking inflation and returns into account, often used to assess the profitability of an investment.