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Question: Continuous cash flows increase lineraly from $0 at t = 0 to to a value of $60,000 at t = 5; thereafter, cash flows decrease linearly from a value of $60,000 at t = 5 to a value of $0 at t = 20, where t is measured in years. Using Laplace transforms, with a time value of money equal to 10% per year compounded continuously, calculate the present worth equivalent for the cash flow pattern. Show all work.

Basic Finance, Finance

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