A Firm Purchased a 11-Year Franchise for a Computer Outlet

question 285

Short Answer

A firm purchased a 11-year franchise for a computer outlet store that is expected to generate income at the rate of dollars per year. If the prevailing interest rate is 9% per year compounded continuously, find the present value of the franchise. Please round the answer to the nearest dollar.
$__________

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Definitions:

First Words

The initial stages of verbal language development in children, marked by the utterance of single words that convey simple concepts or desires.

Brightly Colored

Possessing vivid or intense hues; often used to describe objects or materials that attract attention through their coloration.

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A term or label that refers to a unique entity, place, or thing that can be named directly, usually without needing further description.

Proper Nouns

Names used for an individual person, place, or organization, spelling out unique entities.