McDonalds Corporation licenses and operates over 30,000 fast-food restaurants throughout the world. Between 2005 and 2008, McDonalds
Question:
McDonald’s Corporation licenses and operates over 30,000 fast-food restaurants throughout the world. Between 2005 and 2008, McDonald’s generated revenue at continuous rates between 17.9 and 22.8 billion dollars per year. Suppose that McDonald’s rate of revenue stays within this range. Use an interest rate of 4.5% per year compounded continuously. Fill in the blanks:
(a) The present value of McDonald’s revenue over a five year time period is between ________ and______ billion dollars.
(b) The present value of McDonald’s revenue over a twenty-five-year time period is between ______ and ____ billion dollars.
Step by Step Answer:
Applied Calculus
ISBN: 9781119275565
6th Edition
Authors: Deborah Hughes Hallett, Patti Frazer Lock, Andrew M. Gleason, Daniel E. Flath, Sheldon P. Gordon, David O. Lomen, David Lovelock, William G. McCallum, Brad G. Osgood, Andrew Pasquale