MAT 106

This assignment must be neatly done. It is best if the algebra is typed as a word document and the graph done on graph paper. Make sure your name is on all of the work you submit.

A company has a choice of two copy machines. One, made by Zeroz, costs $88,000. This copy machine depreciates $8,000 a year. A second company, SPU, charges $108,000 for a new machine. This machine depreciates $12,000 a year. The company is interested in determining which copy machine will have the most value after it is bought.

a. Write an equation for the value of the copy machine from Zeroz. Write an equation for the value of the copy machine from SPU.

b. Use the equations to determine where the two lines intersect. Find a value for both variables. Label this point on the graph.

c. Graph both equations on the same set of axes. Label your axes and choose an appropriate scale. Find the intercepts. Only graph the portion that is relevant to the problem.

d. Use the equations to determine when the copy machine from Zeroz is worth more than the one from SPU.

e. Use the graph to determine when the copy machine from SPU is worth more than the one from Zeroz.

f. What are the value intercepts for Zeroz and SPU? Label the points on the graph. What does the value intercept mean in terms of the problem?

g. What are the year intercepts for SPU and Zeroz? Label the points on the graph. What does the value intercept mean in terms of the problem?

h. What is the slope of each line? What does the slope of each line mean in terms of the problem?

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