International partnership for the marketing and distribution

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Barney's Liquids and Aunt Bee's Lemonade plan to expand their international partnership for the marketing and distribution of ready-to-drink tea products by adding 11 countries to their current markets. If the agreement is reached, operations are expected to begin 2 years from now. The snack and beverage company forecasts that the agreement will bring additional revenue of $80 million in the first year of the operation (i.e., the end of year 3), with amounts increasing by $2.5 million each year for the next 7 years. What is the present value now (t =0) of the total revenue if the interest rate of 17% per year?

Reference no: EM13737904

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