Register
Your company will generate $74,000 in annual revenue each year for the next seven years from a new information database. If the appropriate interest rate is 7.25 percent, what is the present value of the
130k views
0 votes
Your company will generate $74,000 in annual revenue each year for the next seven years from a new information database. If the appropriate interest rate is 7.25 percent, what is the present value of the savings

User Ahi Tuna
by
5.0k points

1 Answer

1 vote

Answer:

$395,354.84

Step-by-step explanation:

Present value = Payment of yearly revenue * [(1-interest rate)^n )/ Interest rate]

Present value = $74,000 * [(1-1/(1+0.0725)^7 / 0.0725]

Present value = $74,000 * 5.34263299822737

Present value = $395354.8418688254

Present value = $395,354.84

Therefore, the present value is $395,354.84

User Schubie
by
4.7k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

5.1m questions

6.7m answers

Other Questions

Misk Co. purchased the following securities during 20X7 to be classified as held-to-maturity securities, trading securities, or available-for-sale securities: I. Debt securities bought and held for the
Which of the following should be considered last when searching for financing? Family members Banks Commercial finance companies Credit cards I'm guessing it's C but idk
Explain the similarities and differences between how both producers and consumer use money
Donna's philosophy as she coordinates the marketing efforts is to keep in mind the company's overarching strategy, and to ensure that all marketing activities send a consistent message, beginning with
Brett buys a new cell phone for​ $100. he receives consumer surplus of​ $80 from the purchase. how much does brett value his cell​ phone?
Link Copied!