Verizon Communications said it plans to spend $22.9 billion to expand its fiber-optic Internet and television network so that it can compete with cable-TV providers like Comcast Corp. If the company attracts 950,000 customers in year one and grows its customer base by a constant amount of 15% per year, what is the future worth of the total subscription income in year 5? Estimates indicate that income will average $800 per customer per year. Assume Verizon uses a MARR of 10% per year.
Verizon Communications said it plans to spend $22.9 billion to expand its fiber-optic Internet and television network so that it can compete with cable-TV providers like Comcast Corp. If the company attracts 950,000 customers in year one and grows its customer base by a constant amount of 15% per year, what is the future worth of the total subscription income in year 5? Estimates indicate that income will average $800 per customer per year. Assume Verizon uses a MARR of 10% per year.
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
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Verizon Communications said it plans to spend $22.9 billion to expand its fiber-optic Internet and television network so that it can compete with cable-TV providers like Comcast Corp. If the company attracts 950,000 customers in year one and grows its customer base by a constant amount of 15% per year, what is the future worth of the total subscription income in year 5? Estimates indicate that income will average $800 per customer per year. Assume Verizon uses a MARR of 10% per year.
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