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2 . A company decides to change its floor plan from cubicle to open office. This will bring in a constant stream of (
A company decides to change its floor plan from cubicle to open office. This will bring in a constant stream of $ in extra income annually. If the company invests this extra income in an account that earns continuously compounded interest for ten years, is it worth the change? The change in floor plan costs $
a Find the present value of the income stream.
b Based on the present value of the floor plan change, should the company proceed with the change? Why? Hint: Compare the present value of the income stream to the cost of the floor change
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