Joel Evans, the manager of a national chain of pizza parlors, is selling a 6-year franchise to
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Joel Evans, the manager of a national chain of pizza parlors, is selling a 6-year franchise to operate its newest outlet in Orlando, Florida. Experience in similar localities suggests that t years from now, the franchise will be generating profit continuously at the rate of R(t) = 300 + 5t thousand dollars per year. If the prevailing rate of interest remains fixed during the next 6 years at an annual rate of 6% compounded continuously, what would be a fair price for Joel to charge for the franchise?
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Related Book For
Calculus For Business, Economics And The Social And Life Sciences
ISBN: 9780073532387
11th Brief Edition
Authors: Laurence Hoffmann, Gerald Bradley, David Sobecki, Michael Price
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