The present value (the value in today's dollars) of an investment at time t (in the future) is given by (100+40√t)e-0.04t PV(t): = where t is measured in years. For example, if the investment is sold today (t = 0) the investor would receive $100 (the price they paid for it). If the investor sells the investment in t = 4 years, then the value of the sale in today's dollars would be == PV(4) = 180e-0.16 ≈120.66. At what time should the investment be sold to maximize its present value? What is the maximum present value? Justify your claim that present value is maximized at the point you found.

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