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The management of a national chain of fast-food outlets is selling a permanent franchise in Seattle,...

The management of a national chain of fast-food outlets is selling a permanent franchise in Seattle, Washington. Past experience suggests that t years from now, the franchise will be generating profit in perpetuity at the rate of f (t) = 110,000 + 900t dollars per year. If the prevailing interest rate remains fixed at 4% compounded continuously, what is the present value of the franchise?

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genius_generous answered 2 years ago
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