A company expects their revenues to decrease by $14,587 over the next 8 years, starting from year 2. What is the cash flow, right now, if the company's MARR is 7%? In other words, what is the present worth of the reduction in revenue? Note that the answer would be negative

A company expects their revenues to decrease by $14,587 over the next 8 years, starting from year 2. What is the cash flow, right now, if the company's MARR is 7%? In other words, what is the present worth of the reduction in revenue? Note that the answer would be negative

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter8: Basic Stock Valuation

Section: Chapter Questions

Problem 11P: Brushy Mountain Mining Companys coal reserves are being depleted, so its sales are falling. Also,...

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A company expects their revenues to decrease by $14,587 over the next 8 years, starting
from year 2. What is the cash flow, right now, if the company's MARR is 7%? In other words,
what is the present worth of the reduction in revenue? Note that the answer would be
negative

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