Find the present value of a continuous income stream at 765, Ask an Expert

Management Studies

Find the present value of a continuous income stream at 7.65%, compounded continuously for 12 years, if the rate of flow is f(t)=1,000e^0.03t.

Problem

A business is planning to purchase a piece of equipment that will produce a continuous stream of income for 8 years with rate of flow f(t)=9,000.

If the continuous income stream earns 6.95%, compounded continuously, what single deposit into an account earning the same interest rate will produce the same future value as the continuous income stream? (This deposit is called the present value of the continuous income stream.)

View complete question

Business Management, Management Studies

Category:- Business Management
Reference No.:- M92024574

Have any Question?Write your Review or question?

Related Questions in Business Management

A client refuse to pay full payment of human resource

A client refuse to pay full payment of human resource agency and there is no evidence except for verbal agreement. So, what is the two solutions to solve this problem without involving Lawsuit/Court?

Define task-oriented behavior and people-oriented behavior

Define task-oriented behavior and people-oriented behavior and explain how they are used to evaluate and adapt leadership style.

How is vision used to confrontnbspresistance to change and

How is vision used to confront resistance to change, and move through it? How can a shared vision possibly facilitate collaboration or ultimately the successful implementation of a change initiative?

Nonzero-sum games explainedmost of the games businesses

Nonzero-sum Games Explained Most of the games businesses play are nonzero-sum games where the total gains vary depending on the players' actions. In most business games the size of the pie is determined by the players' a ...

How much of the opposing side should you share in a

How much of the opposing side should you share in a presentation to a multiple-perspective audience, and what techniques would you use?

What is the american association of airport executives what

What is the American Association of Airport Executives? What are the requirements for membership for those currently employed in airport management? You may wish to view the following web site: www.AAAE.org/ by clicking ...

What are costcos key success factors ksfs which of the 11

What are Costco's key success factors (KSFs)? Which of the 11 sociotechnical principles can be seen in Costco?

Permanent income theory 1 describe two ways in which the

Permanent Income Theory 1: Describe two ways in which the permanent income theory of consumption is different from the spending model's consumption demand.

What kind of questions can you ask when choosing a location

What kind of questions can you ask when choosing a location for a restaurant?

I downloaded oracle virtual box running the software kali

I downloaded Oracle Virtual BOX, running the software KALI and need help with these two questions. a. For which hypervisors does Kali Linux offer custom images? What tools must be added to a VirtualBox Kali Linux VM to p ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Business Management Expert