Assume a 6-Year Franchise Is Expected to Generate Profit at the Rate

Multiple Choice

Assume a 6-year franchise is expected to generate profit at the rate of $\sqrt [ 3 ] { t ^ { 2 } + 13,000 }$ dollars per year. If, over the next 6 years, the prevailing annual interest rate remains fixed at 6%, compounded continuously, what is the present value of the franchise? Use Simpson's rule with n = 6 to approximate the integral. Round your answer to two decimal places.

A) $509.79
B) $305.87
C) $1,019.58
D) $339.86