A company expects their revenues to decrease by $14,587 over the next 8 years, starting from year 2. What is the cash flow, right now, if the company's MARR is 7%? In other words, what is the present worth of the reduction in revenue? Note that the answer would be negative

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A company expects their revenues to decrease by $14,587 over the next 8 years, starting
from year 2. What is the cash flow, right now, if the company's MARR is 7%? In other words,
what is the present worth of the reduction in revenue? Note that the answer would be
negative
Transcribed Image Text:A company expects their revenues to decrease by $14,587 over the next 8 years, starting from year 2. What is the cash flow, right now, if the company's MARR is 7%? In other words, what is the present worth of the reduction in revenue? Note that the answer would be negative
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