XYZ Company Limited invests in a particular project and it has been estimated
that after X months of running, the cumulative profit (Sh. ‘000’) from the
project is given by the function 10X – X2
– 5, where X represents time in
months. The project can run for eleven months at the most.
Required:
(i) Determine the initial cost of the project. (2
marks)
(ii) Calculate the break-even time in months for the project. (3
marks)
(iii) Determine the best time to end the project. (3 marks)
(iv) Determine the total profit within the break-even points. (4