Harley-Davidson Inc. manufactures motorcycles. During the years following 2013 (the company’s 110^th anniversary year), the company’s net revenue can be approximated by 5.9+0.3t billion dollars per year, where t is time in years since January 1, 2013. Assume this rate holds through January 1, 2016, and assume a continuous interest rate of 2.0% per year.
(a) What was the net revenue of the Harley-Davidson Company in 2013? What is the projected net revenue in 2016?
(b) What was the present value, on January 1, 2013, of Harley-Davidson’s net revenue for the three years from January 1, 2013 to January 1, 2016?
(c) What is the future value, on January 1, 2016, of net revenue for the preceding 3 years?