Suppose That the Output of the Machinery in a Factory

question 307

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:

Technological Change

Refers to the process by which new technologies are developed and introduced, leading to improvements in productivity, efficiency, or quality in goods and services.

Skilled Labor

Workforce with specialized knowledge, training, and experience requiring advanced skills and education.

Unskilled Labor

Work that requires no specialized skills, education, or training, and often involves manual labor.

Unemployment Insurance

A government-provided financial assistance program for individuals who have lost their jobs, offering temporary financial support.