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Find the present value of the machine production

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Reference no: EM131798835

Question: Income streams  Suppose that a machine's production is considered a continuous income stream with an annual rate of flow at time t given by f(t) = 150e-0.2t in thousands of dollars per year. Money is worth 8%, compounded continuously.

(a) Find the present value of the machine's production over the next 5 years.

(b) Find the future value of the production 5 years from now.

Reference no: EM131798835

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