What is the present value of the extra income stream

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Reference no: EM13970738

An extra tractor will lead to an increase in revenue for a farmer in successive years of £500, £4000, £3,000, £3,000 and £1,000, after which the tractor is sold for £1,000. Assuming that the first revenue is treated as current and the interest rate is 8 per cent, what is the present value of the extra income stream?

Reference no: EM13970738

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