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Find the present value of the profit

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Reference no: EM131282728

Consider the following:

Year 1 Revenue is 1000 and cost is 670 

Year 2 Revenue is 900 and cost is 1100

Year 3 Revenue is 600 and cost is 500 and 

Year 4 Revenue is 800 and cost is 600 

In addition there is a fixed cost of 200 at the beginning of year 1.

  • Find the present value of the profit?
  • Find the future value of the profit (at the end of the fourth year).

Reference no: EM131282728

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