Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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!

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

A Preface To Logic

Authors: Morris R Cohen

1st Edition

0486801853, 9780486801858

More Books

Students also viewed these Mathematics questions

Question

L04 Compare the structural and functional types of neurons.

Answered: 1 week ago

Question

What is the formula to calculate the mth Fibonacci number?

Answered: 1 week ago