A major electronics manufacturer expects to generate additional revenue from its recently won government contract. The company forecasts that the revenue will be $20,000 in the first year, but will decline by $1500 every year for the 5 year life of the contract. What is the future worth of total revenue at an interest rate of 7% per year? The answer is closest to: 98,928 70,534 82,579 85,550
A major electronics manufacturer expects to generate additional revenue from its recently won government contract. The company forecasts that the revenue will be $20,000 in the first year, but will decline by $1500 every year for the 5 year life of the contract. What is the future worth of total revenue at an interest rate of 7% per year? The answer is closest to: 98,928 70,534 82,579 85,550
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
Section: Chapter Questions
Problem 1PS
Related questions
Question
Solve it correctly I upvote definitely.
Please explain answer, preferable in EXCEL spredsheet way.
Transcribed Image Text:A major electronics manufacturer expects to generate additional revenue from its recently won government contract. The
company forecasts that the revenue will be $20,000 in the first year, but will decline by $1500 every year for the 5 year
life of the contract. What is the future worth of total revenue at an interest rate of 7% per year? The answer is closest
to:
98,928
70,534
82,579
85,550
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education