Josh purchased a new machine for his business. Josh expects to produce 80 products at P 100,000.00 per item in each of the first 3 years, after which it expects to produce 100 products per year at P 125,000.00 per item through year 8. If Josh's minimum attractive rate of return is 18% per year, what is the present worth of the expected revenue? Draw the cash flow diagram.

Josh purchased a new machine for his business. Josh expects to produce 80 products at P 100,000.00 per item in each of the first 3 years, after which it expects to produce 100 products per year at P 125,000.00 per item through year 8. If Josh's minimum attractive rate of return is 18% per year, what is the present worth of the expected revenue? Draw the cash flow diagram.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 27P

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