Multiple Choice
A 58-year-old couple are considering opening a business of their own. They will either purchase an established Gift and Card Shoppe or open a new Video Rental Palace. The Gift Shoppe has a continuous income stream with an annual rate of flow at time t given by 
(dollars per year) and the Video Palace has a continuous income stream with a projected annual rate of flow at time t given by 
(dollars per year) . The initial investment is the same for both businesses, and money is worth 10% compounded continuously. Determine which is the better buy by finding the present value of each business over the next 7 years (until the couple reach age 65) .
A) the Video Palace
B) the Gift Shoppe
Correct Answer:
Verified
Correct Answer:
Verified
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