A firm purchased a 15-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.

A) $3,264,095
B) $4,938,398
C) $3,619,817
D) $2,240,764
E) $5,973,418

Question

A firm purchased a 15-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.
​
A) $3,264,095 
B) $4,938,398 
C) $3,619,817 
D) $2,240,764 
E) $5,973,418

Quizplus · Accepted Answer

The Answer of A firm purchased a 15-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.
​
A) $3,264,095 
B) $4,938,398 
C) $3,619,817 
D) $2,240,764 
E) $5,973,418

A Firm Purchased a 15-Year Franchise for a Computer Outlet