TAVALT IVVICHE At least one of the answers above is NOT correct. 1 of the questions remains unanswered. Several years ago, ADTF Distributors purchased a brand new cargo plane to increase their coast to coast shipping capabilities. When the plane was new, it was valued at 145 million dollars. However, it has depreciated in value over time. After owning and using the plane for 5 years, ADTF had it inspected and found that it was now valued at 118 million dollars. Let V(t) give the value of the cargo plane in millions of dollars, where t is the number of years since the plane was purchased. Assume V(t) follows an exponential model of the form V(t)=yo (b). (a) Translate the information given in the first paragraph above into two data points for the function V(t). List the point that corresponds to the original purchase first. VO V5 145 =118 (b) Next, we will find the two missing parameters for V(t). First, Yo= 145 Then, using the second point from part (a), solve for b. Round to 4 decimal places. b = = 0.9596 Note: make sure you have b accurate to 4 decimal places before proceeding. Use this rounded value for b for all the remaining steps. (c) Write the function V(t). V(t)= (d) Estimate the value of the plane 7 years after the purchase (round to 2 decimal places). According to our model, 7 years after ADTF purchased the plane, it has a value of million dollars. (e) How many years until the value of the plane is down to 87 million dollars? Solve for t rounded to 2 decimal places. About years after the purchase, the value of the plane will have depreciated down to 87 million dollars. Note: You can earn partial credit on this problem. Preview My Answers Submit Answers

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Transcribed Image Text:TAVALT IVVICHE At least one of the answers above is NOT correct. 1 of the questions remains unanswered. Several years ago, ADTF Distributors purchased a brand new cargo plane to increase their coast to coast shipping capabilities. When the plane was new, it was valued at 145 million dollars. However, it has depreciated in value over time. After owning and using the plane for 5 years, ADTF had it inspected and found that it was now valued at 118 million dollars. Let V(t) give the value of the cargo plane in millions of dollars, where t is the number of years since the plane was purchased. Assume V(t) follows an exponential model of the form V(t)=yo (b). (a) Translate the information given in the first paragraph above into two data points for the function V(t). List the point that corresponds to the original purchase first. VO V5 145 =118 (b) Next, we will find the two missing parameters for V(t). First, Yo= 145 Then, using the second point from part (a), solve for b. Round to 4 decimal places. b = = 0.9596 Note: make sure you have b accurate to 4 decimal places before proceeding. Use this rounded value for b for all the remaining steps. (c) Write the function V(t). V(t)= (d) Estimate the value of the plane 7 years after the purchase (round to 2 decimal places). According to our model, 7 years after ADTF purchased the plane, it has a value of million dollars. (e) How many years until the value of the plane is down to 87 million dollars? Solve for t rounded to 2 decimal places. About years after the purchase, the value of the plane will have depreciated down to 87 million dollars. Note: You can earn partial credit on this problem. Preview My Answers Submit Answers

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