Selling An Asset Suppose the value of an asset changes with time according to V(t)=-1000+1000t-1
Selling An Asset Suppose the value of an asset changes with time according to V(t) = −1000 + 1000t − 10t 2
Value 24000 19000 14000 9000 4000 10000102030405060 Years
Selling An Asset -10000 10 20 30 40 50 60 4000 9000 14000 19000 24000 Value Years
Selling An Asset v(t)=-1000+1000t-10t Maximum value occurs when v(t)=1000-20t=0 That is when t= 50
Selling An Asset V(t) = −1000 + 1000t − 10t 2 Maximum value occurs when V'(t) = 1000 − 20t = 0 That is, when t = 50
Value 24000 19000 Max value o$24,000 14000 is reached at year 50 9000 4000 -10000102030405060 Years
Selling An Asset -10000 10 20 30 40 50 60 4000 9000 14000 19000 24000 Value Years Max. value of $24,000 is reached at year 50
Selling An Asset The rate-of-return(回报率) in year t is the income earned by the asset in year t as a fraction of its value in year t E.g. if an asset valued at $1,000 earns $100 then its rate-of-return is 10%
Selling An Asset The rate-of-return （回报率）in year t is the income earned by the asset in year t as a fraction of its value in year t. E.g. if an asset valued at $1,000 earns $100 then its rate-of-return is 10%