1) The total cost of a product is defined by the expression TC=0

1) The total cost of a product is defined by the expression TC=0.001q3−0.025q2+5q+100TC=0.001q3−0.025q2+5q+100. If the price of the product is $115.00, determine the optimal quantity to produce and sell. At that level of operation, compute marginal cost, total cost, the total variable cost, average total cost, average variable cost. Revenue and profits

(2) Compute the first two years of the study of present value for the following project. The initial investment is one million dollars. The life of the project is 7 years, depreciated with MACRS class for 5 years. The salvage is 255,000. MARR is 15% and the tax rate is 35%. The project will have the financial support of the bank of 40% of initial investment, payable yearly, with a 10% interest rate for 5 years. Saving per year is estimated at 450,000 for the first 5 years and 275,000 the last two years.