Defence supplier expects to generate additional revenue

Reference no: EM13697635

A major defence supplier expects to generate additional revenue from its recently won government contract. The company expects the revenue will be $110 million in the first year and the revenue increasing by $2.5 million each year for the next 4 years. What is the future value of the total revenue at the end of year 5, if the company's rate of return is 18% per year?

Reference no: EM13697635

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