A Franchise Models the Profit from Its Store as a Continuous

question 362

Multiple Choice

A franchise models the profit from its store as a continuous income stream with a monthly rate of flow at time t given by (dollars per month) . When a new store opens, its manager is judged against the model, with special emphasis on the second half of the first year. Find the total profit for the second 6-month period to . Round your answer to the nearest dollar. ​

• A) $61,831
• B) $51,679
• C) $40,973
• D) $30,821
• E) $46,232

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Definitions:

Final Settlement

The last payment in an agreement, settling all outstanding balances and obligations.

Section 179

A provision in the U.S. tax code that allows businesses to deduct the full purchase price of qualifying equipment and/or software within the tax year it was purchased.

Maximum Deduction

The highest amount that can be subtracted from taxable income, as allowed by tax laws.

Cost Recovery Deduction

A tax deduction that allows a taxpayer to recover the cost of an investment over time through depreciation, amortization, or depletion.