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Company D showed a profit of $1.2 million last year. The CEO of the company expects the profit to increase by 0.06 million dollars each
Company D showed a profit of $1.2 million last year. The CEO of the company expects the profit to increase by 0.06 million dollars each year over the next 5 years and the profits will be continuously invested in an account bearing a 4.5% APR compounded continuously. (a) Write the flow rate, R, of the income stream. (Let t represent the number of years after the company showed a profit of $1.2 million.) R(t) = million dollars per year (b) Calculate the 5-year future value. (Round your answer to three decimal places.) million (c) Calculate the 5-year present value. (Round your answer to three decimal places.) million
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