Solution-Present value of actual stream of additional

Present value of actual stream of additional revenue

Reference no: EM132579722

Assume that, at the end of the seven years' useful life of the machine, the Blue Corporation's management finds that the machine did, in fact, generate the following amounts of additional revenue in the indicated years:

Year Additional Revenue

1 $8,000
2 7,000
3 6,000
4 5,000
5 4,000

Discounted at (10) ten percent compounded interest per year, what is the present value of this actual stream of additional revenue? Show your calculations.

Reference no: EM132579722

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Present value of actual stream of additional revenue

Reference no: EM132579722

Reference no: EM132579722

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