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A business is planningto purchase a piece of equipment that will produce a continuous stream of income for 7 years with rate of flow f
A business is planningto purchase a piece of equipment that will produce a continuous stream of income for years with rate of flow Assume the continuous income stream earns compounded continuously.
A Find the future value of after years and interpret the result.
The future value of the investment after years is $
Round your final answer to significant figures. For example, an answer like $ would become $
B Find the present value of the continuous income streart. That is what single deposit into an account earning the same interest rate will produce the same future value as the continous income stream?
In order to match the $ that will be earned by the continous income stream over years, you would need a present value a single deposit of $
Round your final answer to significant figures. For example, an answer like $ would become $
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