The revenue of a firm (in $100 000s) at the end of each year for the next

Question:

The revenue of a firm (in $100 000s) at the end of each year for the next five years is listed in Table 3.30. Calculate the present value of the revenue stream if the annual discount rate is 8%. Table 3.30 Year 4 64 Revenue -20 -14 39

Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...

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