Suppose That a Vending Machine Company Is Considering Selling Some

question 166

Multiple Choice

Suppose that a vending machine company is considering selling some of its machines. Suppose further that the income from these particular machines is a continuous stream with an annual rate of flow at time t given by Find the present value and future value of the machines over the next 3 years if the money is worth 11% compounded continuously. Round answers to the nearest dollar. ​

• A) PV = $1,893 FV = $2,633
• B) ​PV = $1,893 FV = $2,349
• C) PV = $1,689 FV = $2,349
• D) PV = $1,689 FV = $2,633
• E) PV = $2,364 FV = $2,633

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Definitions:

Medical Expenses

Costs incurred in the prevention or treatment of injury or disease, including fees for physician services, medications, and hospital stays.

Independent Practice Association

An organization of independent physicians, or other healthcare providers, that contracts with health plans or directly with patients to provide care within negotiated price and service constraints.

HMO

Health Maintenance Organization, a type of health insurance plan that requires members to receive healthcare services from a network of designated providers.

Providers

Entities or individuals that supply services or goods.