Question: A company expects their revenues to decrease by $5,773 per year over the next 10 years, starting from year 2. What is the cash

A company expects their revenues to decrease by $5,773 per year over the next 10 years, starting from year 2. What is the cash flow, right now, if the company's MARR is 3% ? In other words, what is the present worth of the reduction in revenue? Note that the answer would be negative
Step by Step Solution
3.42 Rating (155 Votes )
There are 3 Steps involved in it
Step 15 Present value of cash flows can be computed as PV C 1 1r 1 C 2 1r 2 C 3 1r 3 C n 1r n C 1 C ... View full answer
Get step-by-step solutions from verified subject matter experts
