Produce same future value as the continuous income stream

Assignment Help Project Management

Reference no: EM131269876

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: EM131269876

Questions Cloud

Compound continuously which is the better investment : Which is the better investment if the rate of the income from the business is f(t) = 2,250.- If both the bond and the continuous income stream earn 3.75%, compounded continuously, which is the better investment?

How many of each of the following are there in the disk : A fixed disk has 80 cylinders. The tracks in each cylinder are numbered 0-11. The upper surface of the topmost platter and the lower surface of the bottommost platter are not used for recording data

Should you buy the tablets today : Your competitors sell the tablet for $41.20 and you must mark you product up from cost by at least 20% to earn a minimal profit, should you buy the tablets today? Explain your answer.

Write a program that will be used to keep track of orders : Write a program that will be used to keep track of orders placed at a donut shop. There are two types of items that can be ordered: coffee or donuts. Your program will have a class for each order type, and an abstract superclass

Produce same future value as the continuous income stream : 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?

How you will monitor the risks that you have projected : For this assignment, you will determine how you will monitor the risks that you have projected, as well as the unknown risks that occur during the course of the project. You will also formulate a control plan once a risk has been identified during..

What is the potential problem with building too many indexes : What attributes should be considered as candidates for having indexes built on them? What is the potential problem with building too many indexes?

What single deposit into account earning same interest rate : 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?

Identify the major short run and long cost functions : Analyze the major short run and long cost functions for the low-calorie, frozen microwaveable food company given the cost functions below.

User Account

All Pages