Buckeye Manufacturing expects to generate additional revenue from its recently won government contract. Buckeye forecasts that the revenue will be $40 million in the first year, but will decline by $10.5 million every year for the next 3 years. What is the future worth of total revenue at the end of 3 years in actual dollars if the real interest rate is 2% per year and the average rate of inflation is 11.25% per year?

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The Answer of Buckeye Manufacturing expects to generate additional revenue from its recently won government contract. Buckeye forecasts that the revenue will be $40 million in the first year, but will decline by $10.5 million every year for the next 3 years. What is the future worth of total revenue at the end of 3 years in actual dollars if the real interest rate is 2% per year and the average rate of inflation is 11.25% per year?

Buckeye Manufacturing Expects to Generate Additional Revenue from Its Recently