The management of a national chain of fast-food outlets is selling a permanent franchise in Seattle, Washington.
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The management of a national chain of fast-food outlets is selling a permanent franchise in Seattle, Washington. Past experience suggests that t years from now, the franchise will be generating profit in perpetuity at the rate of f(t) = 100,000 + 900t dollars per year. If the prevailing interest rate remains fixed at 5% compounded continuously, what is the present value of the franchise?
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100 005t PV 100000 9001e dt JO N lim 1000009001e 005t dt N 0 Using integrat...View the full answer
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Related Book For 
Calculus For Business, Economics And The Social And Life Sciences
ISBN: 9780073532387
11th Brief Edition
Authors: Laurence Hoffmann, Gerald Bradley, David Sobecki, Michael Price
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