Revenue from a sugar company was $21,00C in years 1 through 3 and then increased geometrically by 15% per year through year 7 Determine the equivalent annual income in years 1 through 7, using an interest rate of 10% per year.

Revenue from a sugar company was $21,00C in years 1 through 3 and then increased geometrically by 15% per year through year 7 Determine the equivalent annual income in years 1 through 7, using an interest rate of 10% per year.

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter7: Stocks (equity) - Characterstics And Valuation

Section: Chapter Questions

Problem 19PROB

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Question

Revenue from a sugar company was $21,000
in years 1 through 3 and then increased
geometrically by 15% per year through year 7.
Determine the equivalent annual income in
years 1 through 7, using an interest rate of
10% per year.

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