You own a company. This company’s projected revenue is $30,000 for year 1, $31,000 for year 2, and $32,000 for year 3. From the 4th year onwards, revenue is expected to be 5% higher than the previous year. Assume the appropriate nominal discount rate is 8%, and all revenue is collected at the end of each year. Determine the present value of your sales revenue for the first 15 years, round to 2 decimal places. [show the step by step of how to find each result]

You own a company. This company’s projected revenue is $30,000 for year 1, $31,000 for year 2, and $32,000 for year 3. From the 4th year onwards, revenue is expected to be 5% higher than the previous year. Assume the appropriate nominal discount rate is 8%, and all revenue is collected at the end of each year. Determine the present value of your sales revenue for the first 15 years, round to 2 decimal places. [show the step by step of how to find each result]

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

You deposit $4,034 into a 9% account today. At the end of two years, you will deposit another $5,402. In five years, you plan a $4,917 purchase. How much is left in the account one year after the purchase?
If you invest $2,000 per year for 9 years and earn a 5% return on your investment during that period, how much will you have accumulated by the end of the nine-year period? (a) $2,000 (b) $11,970 (c) $18,000 (d) $22,054 (e) $30,000
Suppose a certain manufacturer deposits $3000 at the beginning of each three month period or six years in an account paying 8% interest, compounded quarterly. How much will be in the account at the end of the 6 year period ?
You put 250.00 in a bank for 5 years at 12%. If intrest is added at the end of the year, what is the balance at the end of the 5th year?
Starting next year you plan to deposit $1000 each year into an account earning 9.25% effective annual return. How many years will it take for your account to grow to $20,000, if you increase your deposit each year by 5%? (Hint: use excel goal seek).