Question
For the year ending December 31, 2008, General Electric's revenue was $182.52 billion. Assume that the revenue increases by4%per year and that General Electric will
For the year ending December 31, 2008, General Electric's revenue was $182.52 billion. Assume that the revenue increases by4%per year and that General Electric will (continuously) invest 10% of its revenues each year at an APR of3.2%compounded continuously for a period of7years beginning at the end of December of 2008.(a) Write the flow rate equation.
(a) R(t) = (blank) billion dollars per year
(b) What is the present value (in December, 2008) of this7-year investment? (Round your answer to three decimal places.) $ (blank)billion
Please fill in the blanks and state answers clearly!
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