Calculate the present value and future value of the machines

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Reference no: EM131798755

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

f(t) = 12e^-0.4(t+3)

in thousands of dollars per year.

Find the present value and future value of the machines over the next 5 years if money is worth 10% compounded continuously.

Reference no: EM131798755

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