The Marginal Cost Function for the Manufacture of Portable CD

question 23

Multiple Choice

The marginal cost function for the manufacture of portable CD players is given by where is the number of CD players manufactured. Use a Riemann sun with n = 15 to estimate the cost of producing the first 15 CD players.

• A)$147.75
• B)$148.95
• C)$147.90
• D)$133.88
• E)$148.80

---

Definitions:

Average Rate of Return

A financial ratio that represents the average net profit or return expected on an investment over its lifetime, expressed as a percentage.

Straight-Line Depreciation

A method of calculating the depreciation of an asset, dividing its cost minus salvage value by its useful life, resulting in equal annual depreciation expenses.

Net Present Value

A method used in capital budgeting to evaluate the profitability of an investment or project, calculating the difference between the present value of cash inflows and outflows.

Present Value Index

A calculation that compares the present value of cash inflows to the initial investment, often used in capital budgeting.