Mathematics 2 Deneme Sınavı Sorusu #450933

Suppose that a company manufactures a certain type of machine, and it estimates that each machine will generate a continuous income stream whose rate in the th year of operation will be 15 −  2t  million TL per year. Assuming that the lifetime of a machine is about 7 years and that the money can be invested at the annual rate of 8%, compounded continuously, find the fair market price of each machine.


42,363

43,363

44,363

45,363

46,363


Yanıt Açıklaması:

In this situation it is reasonable to assume that the fair market price of each machine is the present value of the continuous income stream with

Using formula of present value of a continuous income stream we find that this price is

 

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