Answer:
Slope:
Y-intercept: 399
Slope-intercept form:
Step-by-step explanation:
1. The equation in Standard form is given in the problem:
2. Then, to write the equation of the line in slope-intercept form , where <em>m</em> is the slope and <em>b</em> is the y-intercept, you must solve for <em>y</em> as you can see below:
3. Therefore, the slope and the y-intercept are:
9514 1404 393
Answer:
a) see the attached spreadsheet (table)
b) Calculate, for a 10-year horizon; Computate for a longer horizon.
c) Year 13; no
Step-by-step explanation:
a) The attached table shows net income projections for the two companies. Calculate's increases by 0.5 million each year; Computate's increases by 15% each year. The result is rounded to the nearest dollar.
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b) After year 4, Computate's net income is increasing by more than 0.5 million per year, so its growth is faster and getting faster yet. However, in the first 10 years, Calculate's net income remains higher than that of Computate. If we presume that some percentage of net income is returned to investors, then Calculate may provide a better return on investment.
The scenario given here is only interested in the first 10 years. However, beyond that time frame (see part C), we find that Computate's income growth far exceeds that of Calculate.
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c) Extending the table through year 13, we see that Computate's net income exceeds Calculate's in that year. It continues to remain higher as long as the model remains valid.
