A Rectangular Box Is to Have a Square Base and a Volume

question 151

Short Answer

A rectangular box is to have a square base and a volume of 24 ft.³. If the material for the base costs 20 cent/square foot, the material for the sides costs 10 cent/square foot, and the material for the top costs 40 cent/square foot, determine the dimensions of the box that can be constructed at minimum cost.
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Definitions:

Payback Period Method

A simple calculation that divides the initial investment by the annual cash inflows to determine how long it will take to recoup the initial investment.

Capital Budgeting

The process of planning and managing a firm's long-term investments in projects and assets.

Net Present Value

The calculation used to find today's value of a future stream of payments and receipts by discounting them at a specific rate, often used in capital budgeting to assess the profitability of an investment.

Postaudit

A thorough review conducted after the completion of a project or investment to evaluate its actual performance against expected outcomes.