What is the expected revenue for the company

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Question - The Polynesian Urbanization Authority (PUA) buys new computers for $100,000 in May.

They estimate annual revenue will be from $50,000 to $400,000, but most likely about $300,000 over the next 5 years.

Operating and Maintenance costs will remain constant at $75,000/year.

Their MARR-9%.

Inflation is a constant 2.1%.

1. What is the expected revenue for the company over 5 years using a beta distribution?

2. What is the present worth of this revenue, adjusted for inflation?

Reference no: EM132162842

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