What is the net present value of net revenue stream

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Reference no: EM131967528

Consider a piece of equipment for which the expenditure at the beginning of period 1 is $40,000. Given that this is a cost, consider it as a negative in a net revenue framework. The net revenue at the end of year 1 is $10,000. The net revenue at the end of year 2 is $15,000. The net revenue at the end of year 3 is $20,000. This includes revenue from operations and sale of the used equipment. The interest rate is 3%. What is the net present value of this net revenue stream?

Reference no: EM131967528

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