Suppose That a Printing Firm Considers the Production of Its

question 124

Multiple Choice

Suppose that a printing firm considers the production of its presses as a continuous income stream. If the annual rate of flow at time t is given by in thousands of dollars per year, and if money is worth 7% compounded continuously, find the present value and future value of the presses over the next 10 years. Round your answer to the nearest dollar. ​

• A) Present Value: $212,562; Future Value: $428,047
• B) Present Value: $181,071; Future Value: $364,632
• C) Present Value: $119,242; Future Value: $240,124
• D) Present Value: $193,878; Future Value: $390,422
• E) Present Value: $127,833; Future Value: $257,424

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Definitions:

Productivity

The efficiency at which inputs (such as labor and capital) are converted into outputs (goods or services).

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A concept in psychology that suggests behavior is shaped by its consequences, through rewards or punishments.

Environmental Consequences

The effects or outcomes that activities or policies have on the natural environment, including impacts on air, water, and land.