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A 56-year-old couple is considering opening a business of their own. They will either purchase an established Gift and Card Shoppe or open a new
A 56-year-old couple is considering opening a business of their own. They will either purchase an established Gift and Card Shoppe or open a new Wine Boutique. The Gift Shoppe has a continuous income stream with an annual rate of flow at time t given by G(t)=31,900(dollarsperyear). The Wine Boutique has a continuous income stream with a projected annual rate of flow at time t given by W(t)=20,500e0.08t(dollarsperyear). The initial investment is the same for both businesses, and money is worth 10% compounded continuously. Find the present value of each business over the next 9 years (until the couple reaches age 65) to see which is the better buy. (Round your answers to the nearest dollar.) \begin{tabular}{ll} Gift Shoppe & $ \\ Wine Boutique & $ \end{tabular}
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