Question: please solve the question in word format not in excel A major electronics manufacturer expects to generate 4 years of revenue from its recently won

please solve the question in word format not in excel please solve the question in word format not in excel A major

A major electronics manufacturer expects to generate 4 years of revenue from its recently won governmer contract. The company forecasts that the revenue will be $200 million in the first year, and will increase by million every year for the following 3 years (years 2, 3, and 4). Using the end-of-the-year convention, what the present worth of the entire 4-year revenue stream at an interest rate of 8% per year? Solution: Discount Rate Incremental revenue in $ million 5 Year 1 2 3 4 Revenue (in million $) 200 205 210 215 = NPV = (Discount rate, Revenue in million $ in first year: revenue in million $ in the 4rth year) = 685.68

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