3. Suppose that a company produces furniture and, based on available data, have found that...
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3. Suppose that a company produces furniture and, based on available data, have found that their profits can be described by the function p(t) = 100000(1 - + 112- 13), where t is years since January 1, 2020. If interest rates are currently 2.5% but have varied between 3% and 6% for the last decade, what is a fair selling price today for the company if the buyer expects to own the company for ten years? Explain why you make the assumptions you do. 4. Find the average profit per year of the furniture company in problem 3, from January 1, 2020 to January 1, 2030. 3. Suppose that a company produces furniture and, based on available data, have found that their profits can be described by the function p(t) = 100000(1 - + 112- 13), where t is years since January 1, 2020. If interest rates are currently 2.5% but have varied between 3% and 6% for the last decade, what is a fair selling price today for the company if the buyer expects to own the company for ten years? Explain why you make the assumptions you do. 4. Find the average profit per year of the furniture company in problem 3, from January 1, 2020 to January 1, 2030
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