Suppose That a Vending Machine Company Is Considering Selling Some

question 208

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:

Disrupt-then-reframe Technique

A persuasive strategy that involves introducing an unexpected element to disrupt thinking patterns, followed by a reframing of the situation to influence attitudes or behaviors.

Bargain

An agreement between two or more parties to exchange goods or services for mutually perceived value, often involving negotiation to reach favorable terms.

That's-not-all Technique

A persuasion method where before finalizing a deal, an additional offer is made to make the proposal seem more attractive.

Reciprocal Concessions

A negotiation strategy where each party makes compromises to reach an agreement, often strengthening the relationship through mutual sacrifice.