A company invests $120,000 in a new process. Revenues from the new process are projected at...

 

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A company invests $120,000 in a new process. Revenues from the new process are projected at $150,000 in the first year, $175,000 in the second, and $200,000 in each of the next five years. Costs are estimated to be $125,000 in the first year, $145,000 in the second, and $165,000 in each of the next five years. If funds are worth 12% per annum, What is the present worth of the anticipated cash flows? A company invests $120,000 in a new process. Revenues from the new process are projected at $150,000 in the first year, $175,000 in the second, and $200,000 in each of the next five years. Costs are estimated to be $125,000 in the first year, $145,000 in the second, and $165,000 in each of the next five years. If funds are worth 12% per annum, What is the present worth of the anticipated cash flows?

Answer rating: 100% (QA)

Year n 2 3 4 5 6 7 Initial Investment A 12000000 Cash Inflow B Discou... View the full answer