Question: Suppose that a vending machine company is considering selling some of its machines. Suppose further that the income from these particular machines is a continuous
Suppose that a vending machine company is considering selling some of its machines. Suppose further that the income from these particular machines is a continuous stream with an annual rate of flow at time t given by f (t)=12e-0.4(t+3) in thousands of dollars per year. Find the present value and future value of the machines over the next 5 years if money is worth 10% compounded continuously.
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