Use the 3rd-Degree Taylor Polynomial Of $f ( x ) = \sqrt { x }$

question 195

Essay

Use the 3rd-degree Taylor polynomial of $f ( x ) = \sqrt { x }$ about $x = 4$ to approximate $\sqrt { 6 }$ . Use the remainder term to give an upper bound for the error in this approximation.

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Definitions:

Cost of Capital

The return rate that a company must earn on its investment projects to maintain its market value and satisfy its creditors and investors.

Market Value

The current value at which the market facilitates the sale or purchase of a service or asset.

WACC

Weighted Average Cost of Capital; a calculation used to assess the cost of a company's financing by averaging the costs of its equity and debt, weighted by their respective proportions in the company's capital structure.

Level of Risk

Describes the amount of uncertainty or potential financial loss inherent in an investment decision.