e2 Amazon predicted that if they invest$14,500,000 on carrying and deliveringgroceries now it will earn a large sum ofrevenue in the near future. Amazon alsorealized that there will be no new revenue inyears 1 through 3, but from year 4 revenue willbe $500,000, and there after it would increaseaccording to an arithmetic gradient throughyear 12. What is the required gradient, if theyexpected rate of return is 12% per year? Drawthe cash flow diagram.

Present Value is the amount to be calculated using the estimated future expected receipt/cash flow…

Answered: year 12. What is the required gradient,…

Business

Accounting

year 12. What is the required gradient, if they expected rate of return is 12% per year? Draw the cash flow diagram.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 17EB: Caduceus Company is considering the purchase of a new piece of factory equipment that will cost...

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