Harley-Davidson Inc. manufactures motorcycles. During the years following 2018 (the company's 115th anniversary year), thecompany's gross income can be approximated¹ by 1.97 -0.13 billion dollars per year, wheret is time in years since January 1, 2018.Assume this rate holds through January 1, 2023, and assume a continuous interest rate of 2.0% per year.(a) What was the income of the Harley-Davidson Company in 2018 (t = 0)? What is the projected gross income in 2022 (t = 4)?The gross income in 2018 was 1.97billion dollars.The projected gross income in 2022 is 1.45(b) What was the present value, on January 1, 2018, of Harley-Davidson's gross income for the four years from January 1, 2018 toJanuary 1, 2022?Round your answer to two decimal places.i 6.624ibillion dollars(c) What is the future value, on January 1, 2022, of the gross income for the preceding 4 years?7.09billion dollars.billion dollars1www.marketwatch.com, accessed December 16, 2020.

The objective of the question is to calculate the gross income of Harley-Davidson Inc. for the years…

Answered: Harley-Davidson Inc. manufactures…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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