Question
Company D showed a profit of $1.9 million last year. The CEO of the company expects the profit to increase by 0.04 million dollar each
Company D showed a profit of $1.9 million last year. The CEO of the company expects the profit to increase by 0.04 million dollar each year over the next 5 years and the profits will be continuously invested in an account bearing a 4.5% APR compunded continuously.
a) Write the flow rate, R, of the income stream. (let t represend the number of years after the company showed a profit of $1.9 million.)
R(t)=
b) Calculate the 5-year future value. (Round answer to three decimal places.)
$...million
c) Calculate the 5-year present value. (Round answer to three decimal places.)
$...million
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Principles of Finance
Authors: Scott Besley, Eugene F. Brigham
6th edition
9781305178045, 1285429648, 1305178041, 978-1285429649
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