題組內容

1. An enterpriser plans to purchase one new machine for 500 dollars. When the machine is retired at time T, its salvage value is S(T) = 300 - 20T. The machine yields a quasi-rent flow at the rate Rt = 80 - 4t dollars per year. Assuming that the rate of interest is 4%.



(1) Write down the present value of the enterpriser's profit. (10%)