A company can buy a machine that is expected to increase the company's net income by $30, 000 each year for the 5-year life of the machine. The company also estimates that for the next 5 years, the money they invest from that continuous stream will earn 8 % compounded continuously. Round all answers to the nearest cent. a. Find the total amount of money produced by the machine over its 5-year life. b. Find the future value of the income stream. $ c. Find the present value of the income stream.
A company can buy a machine that is expected to increase the company's net income by $30, 000 each year for the 5-year life of the machine. The company also estimates that for the next 5 years, the money they invest from that continuous stream will earn 8 % compounded continuously. Round all answers to the nearest cent. a. Find the total amount of money produced by the machine over its 5-year life. b. Find the future value of the income stream. $ c. Find the present value of the income stream.
Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter5: Inverse, Exponential, And Logarithmic Functions
Section: Chapter Questions
Problem 22T
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