Tracy Purchased a 15-Year Franchise for a Computer Outlet Store

question 76

Multiple Choice

Tracy purchased a 15-year franchise for a computer outlet store that is expected to generate income at the rate of ​ ​
Dollars/year. If the prevailing interest rate is 10% /year compounded continuously, find the present value of the franchise. (Hint: Use the formula of the present value .) Please round the answer to the nearest cent.

• A) $589,808.22
• B) $884,712.33
• C) $530,827.40
• D) $471,846.58
• E) $674,066.54

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Definitions:

Gains From Trade

Gains from trade refer to the net benefits that countries or individuals obtain by selling what they produce and buying what they consume more efficiently through trade.

International Trade

The exchange of goods and services between countries, driven by comparative advantage and resulting in increased economic efficiency.

Export Cheese

The process of selling and shipping cheese to other countries from the country of origin.

Tariff

A tax imposed by a government on imported goods or services to regulate trade and protect domestic industries.