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25 January, 01:13

An entrepreneur estimates his total profit (total revenue minus total cost) for his proposed company as p (x) = x3 - 4x2 + 5x - 20, where p is in hundreds of dollars and x is number of years the company has been in business. In which year (x) will the entrepreneur break even?

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  1. 25 January, 01:29
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    Year in which the entrepreneur break even is 4

    Step-by-step explanation:

    We are given:

    p (x) = x^3-4x^2+5x-20

    We would find the value of x

    Solving:

    x^3-4x^2+5x-20 = 0

    (x^3-4x^2) + (5x-20) = 0

    x^2 (x-4) + 5 (x-4) = 0

    (x-4) (x^2+5) = 0

    => x-4 = 0 and x^2+5 = 0

    x = 4 and x^2 = - 5

    x = 4 and x = ±√-5 or ±√5 i (not real solutions)

    So, x = 4

    So, year in which the entrepreneur break even is 4
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