John Deere Inc is evaluating the revenues expected to be generated by a new product. They will evaluate it as if the product will generate $$23$ million per year in revenues for the first $10$ years $($starting $1$ year from now$),$ but then revenues will decrease by $8\mathrm{.}0\%$ per year forever after the $10$th year. What is the present value of the revenue stream if the revenues are recognized at the end of each year, and if the relevant discount rate is $15\mathrm{.}5\%?$

Enter answer in millions of dollars, rounded to the nearest tenth, as in $"12\mathrm{.}3"$ million.

Answer rating: 100% (QA)

To calculate the present value of the revenue stream generated by the new product well use the formu... View the full answer