For the 2009 fiscal year, Lowe's Companies, Inc. reported an annual net income of $48,230,000. Assume the income can be reinvested continuously at an annual rate of return of 5.8% compounded continuously and that Lowe's will maintain this annual net income for the next 3 years.† (a) What is the future value of its 3-year net income? $ million (b) What is the present value of its 3-year net income? $ million
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
Speed, Time, and Distance
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Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.
For the 2009 fiscal year, Lowe's Companies, Inc. reported an annual net income of $48,230,000. Assume the income can be reinvested continuously at an annual rate of return of 5.8% compounded continuously and that Lowe's will maintain this annual net income for the next 3 years.†
$ million
(b) What is the present value of its 3-year net income?
$ million
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