Determine each table residual value

Reference no: EM132158763

Question: Pass-Time Pool Hall may buy 10 of the finest slate pool tables available. Each table will cost $12,000 and have an unknown residual value. Pass-Time's management is certain that business will increase and that the hall will be able to host a number of tournaments. The expected increase in net revenues is $22,000 each year for the next 8 years. Determine each table's residual value if the PW is to equal zero. The cost of money for Pass-Time is 10%.

Reference no: EM132158763

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