Pittsburgh Custom Products (PCP) purchased a new machine for ram-cambering large I beams. PCP expects to bend 90 beams at $1,800 per beam in each of the first 3 years, after which it expects to bend 100 beams per year at $2,600 per beam through year 9. If the company's minimum attractive rate of return is 17% per year, what is the present worth of the expected revenue? The present worth of the expected revenue is $
Pittsburgh Custom Products (PCP) purchased a new machine for ram-cambering large I beams. PCP expects to bend 90 beams at $1,800 per beam in each of the first 3 years, after which it expects to bend 100 beams per year at $2,600 per beam through year 9. If the company's minimum attractive rate of return is 17% per year, what is the present worth of the expected revenue? The present worth of the expected revenue is $
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Pittsburgh Custom Products (PCP) purchased a new machine for ram-cambering large I beams. PCP expects to bend 90 beams at
$1,800 per beam in each of the first 3 years, after which it expects to bend 100 beams per year at $2,600 per beam through year 9.
If the company's minimum attractive rate of return is 17% per year, what is the present worth of the expected revenue?
The present worth of the expected revenue is $](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4fa378b4-515d-44b6-b8a6-81603afb9f37%2F6cf26c0a-68d5-4d36-98be-20c85c3260aa%2F3o51c6s_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Pittsburgh Custom Products (PCP) purchased a new machine for ram-cambering large I beams. PCP expects to bend 90 beams at
$1,800 per beam in each of the first 3 years, after which it expects to bend 100 beams per year at $2,600 per beam through year 9.
If the company's minimum attractive rate of return is 17% per year, what is the present worth of the expected revenue?
The present worth of the expected revenue is $
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