Future value as the continuous income stream

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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.)

Reference no: EM131269848

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