Book sales of a popular author are expected to start at 500,000 books in the first is expected to decrease by 8,000 books each month over the three-year study p receives $5 per book sold. If the author places all monies received ina bank ac interest per month what is the present (time 0) equivalent value of the three vea

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
icon
Related questions
Question
Book sales of a popular author are expected to start at 500,000 books in the first month. This numbe
is expected to decrease by 8,000 books each month over the three-year study period. The author
receives $5 per book sold. If the author places all monies received in a bank account eaming 1%
interest per month, what is the present (time 0) equivalent value of the three years of book sales?
Sales money is received at the end of each month and the first receipt will be one month from today.
Transcribed Image Text:Book sales of a popular author are expected to start at 500,000 books in the first month. This numbe is expected to decrease by 8,000 books each month over the three-year study period. The author receives $5 per book sold. If the author places all monies received in a bank account eaming 1% interest per month, what is the present (time 0) equivalent value of the three years of book sales? Sales money is received at the end of each month and the first receipt will be one month from today.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Benefit Cost Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education