Solved

A New Computer Will Generate $1,000 in Net Revenue for a Firm

Question 2

Multiple Choice

A new computer will generate $1,000 in net revenue for a firm during its first year,$500 during its second year,$250 during its third year,and nothing thereafter.If the interest rate is 10 percent (0.10) per year,what is the present value of the computer to the firm? (The first payment will be received at the end of this year. )


A) $1,590.91
B) $1,510.14
C) $1,750.00
D) $1,446.28
E) $1,661.16

Correct Answer:

verifed

Verified

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents