Suppose That the Output of the Machinery in a Factory

question 121

Multiple Choice

Suppose that the output of the machinery in a factory can be considered as a continuous income stream with an annual rate of flow at time t given by in thousands of dollars per year. If the annual interest rate is 4% compounded continuously, find the capital value of the machinery. Round your answer to the nearest dollar. ​

• A)$4,406,250
• B)$1,175,000
• C)$1,958,333
• D)$6,462,500
• E)$2,937,500

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Definitions:

Illusion of Unanimity

A phenomenon in group decision-making where silence is interpreted as agreement, despite underlying disagreements among members.

Self-Censorship

The act of withholding or altering one's own expressions, speech, or writing due to fear of criticism, controversy, or punishment.

Sucker Effect

A phenomenon where individuals reduce their effort when they believe others are free-riding on their work.

Free Rider Effect

A situation where some individuals benefit from resources or services without contributing to the cost or effort involved.