Assignment:
Harley-Davidson Inc. manufactures motorcycles. During the years following 2003 (the company’s 100th anniversary), the company’s net revenue came be approximated by 4.6 +0.4t billion dollars per year, where t is time in years since January 1, 2003. Assume this rate holds through January 1, 2013, and assume a continuous interest rate of 3.5% per year.
A. What was the net revenue of the Harley-Davidson Company in 2003? What is the projected net revenue in 2013?
B. What was the present value, on January 1, 2003, of Harley-Davidson’s net revenue for the ten years from January 1, 2003 to January 1, 2013?
C. What is the future value, on January 1, 2013, of net revenue for the preceding 10 years?
Provide complete and step by step solution for the question and show calculations and use formulas.