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Company Z showed a profit of $1.5 billion last year. The CEO of the company expects the profit to…

by | Sep 9, 2023 | finance

Company Z showed a profit of $1.5 billion last year. The CEO of the company expects the profit to nit increase by 0.25 billion dollars per year over the next seven years and the prolits will be continmously invested in an account bearing a 6.1% APR compounded continuously. (a) Calculate the seven-year present value. Show work to receive credit (b) Calculate the seven-year future value. Show work to receive credit. 2. Demand for a certain item is given by D(p) = 70e-02p million units at a price of Sp per unit. (a) Compute the consumer expenditure at a price of $15. (b) Compute the consumer surplus at a price of $15.

 

  

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