Question

As the financial consultant to a classic auto dealership, you estimate that the total value (in dollars) of its collection of 1959 Chevrolets and Fords is given by the formula v = 308,000 + 980t^2 (t ≥ 5) where t is the number of years from now. You anticipate a continuous inflation rate of 5% per year, so that the discounted (present) value of an item that will be worth $v in t years' time is p = ve^−0.05t. When would you advise the dealership to sell the vehicles to maximize their discounted value? (Round your answer to one decimal place.) years from now

Answer 1

P-ve-005t -00St for waxmum disuo unted value O ost 0 301,00+ 916010) dt dE 940 (4) O.oSt 1bt 0.0s 30ßoo0980tL) ruary 2013 MT W TFS 4 5 6 7 8 9 11 12 13 16 15 1f

o cala t= 29,258