What is the present value now of the total revenue

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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 12 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 $40000 in the first year of the operation (i.e., the end of year 3) with amounts increasing by $12500 each year for the next 6 years. What is the present value now (t =0) of the total revenue if the interest rate of 15% per year? Specify answer to nearest cent.

Reference no: EM13838662

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