14. Find the accumulated present value of an investment over a 10 year period if there is a continuous money flow of $10,000 per year and the interest rate is 1.3% compounded continuously.
15. A company is considering expanding their production capabilities with a new machine that costs $52,000 and has a projected lifespan of 7 years. They estimate the increased production will provide a constant $8,000 per year of additional income. Money can earn 1.1% per year, compounded continuously. Should the company buy the machine?
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a. Select an answer Yes, the present value of the machine is greater than the cost by No, the present value of the machine is less than the cost by
b. $ over the life of the machine
16. Find the present value of a continuous income stream F(t)=20+7t, where t is in years and F is in thousands of dollars per year, for 30 years, if money can earn 2.5% annual interest, compounded continuously.
Present value = thousand dollars.
17. Given f(x,y)=−2x^2+4xy^6+3y^5, find
18. Find the critical point of the function f(x,y)=−4−7x−5x^2+6y−2y^2
19. Suppose that f(x,y)=x^4+y^4−xy
Then the minimum is