Question $12(7$ points$)$

A business is expected to generate income at a continuous rate of $$25,000$ per year for the next eight years. Money can earn

annual interest, compounded continuously. The business is for sale for $$153,000.$ Is this a good deal? $($Calculate the PV for the

business over the next eight years and determine if it is higher or lower than the selling price. Higher would be a good deal, lower

would be a bad deal. For your answer, simply type Yes or No$.)$

A

Question $13(7$ points$)$

From the previous question, how much is the present value of the income stream?