Reinvested continuously at an annual rate of return

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Reference no: EM13795304

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 7 years.

(a) What is the future value of its 7-year net income?

(b) What is the present value of its 7-year net income?

Reference no: EM13795304

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