A company is considering expanding their production capabilities with a new machine that costs $38,000 and has a projected lifespan of 8 years . They estimate the increased production will provide a constant $5,000 per year of additional income . Money can earn 1.7% per year, compounded continuously . Should the company buy the machine

the company should  not buy the machine.

Explanation:

Given that:

cost of the new machine = $38000

lifespan = 8 years

constant income = 5,000

Interest = 1.7%

no of days  = 365

The value of earning at the time of buying can be calculated as follows:

Sum of a Geometric progression

S = 8.4211

The value of earning at the time of buying = (5000 × 8.4211)-$5000

The value of earning at the time of buying = $42105.5 -$5000

The value of earning at the time of buying = $37105.5

The Machine price = $38000

If the value - Machine price > 0, then the company should  buy the machine

∴

= $ 37105.5 - $38000

= -$ 894.5

Since the value is negative which is less than zero, then the company should  not buy the machine.

b. take periodic breaks and alternate between tasks.  

will increase work efficiency, and avoid health issues.