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After graduating from college, several friends started a small business that immediately became successful. When the business was established, the partners determined that 10% of
After graduating from college, several friends started a small business that immediately became
successful. When the business was established, the partners determined that 10% of the profits
will be continuously invested each year. In the first year, the company posted a profit of $389 000.
Determine the income stream flow rate for the investments over the next several years if:
(a) The businesss profit remains constant.
(b)The profit grows by $40000 each year.
(c)The profit increases by 19% each year.
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