A Firm Purchased a 16-Year Franchise for a Computer Outlet

question 231

Multiple Choice

A firm purchased a 16-year franchise for a computer outlet store that is expected to generate income at the rate of dollars per year.If the prevailing interest rate is 10% per year compounded continuously, find the present value of the franchise.

• A)$1,114,979
• B)$2,250,532
• C)$4,660,006
• D)$3,192,414
• E)$1,756,632

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