Question

A computer manufacturer built a new facility for assembling computers. There were construction and new equipment costs. The company paid for these costs and made combined profits of $80 million after 4 years, as shown in the graph

Answer 1

Given a point (4,80) and a slope, m = 60, these can be used to formulate the equation of the graph. Using the point-slope formula:

y - y1 = m(x - x1)

y - 80 = 60(x - 4)

y - 80 = 60x - 240

y = 60x -160

Taking the x and y-intercepts:

At y = 0

0 = 60x - 160

x = 2.7

At x = 0

y = 60(0) - 160

y = -160

There is a graph of a line that has a y intercept that is negative $160 million and an x intercept that is 2.7 years.