What is the present value of those revenues

Assignment Help Financial Accounting

Reference no: EM131247946

We are investing in a maintenance project that will increase annual revenues by $10,000 over ten years.

a) What is the present value of those revenues, if the project is financed at 7% interest, compounded annually? What will the future worth of those revenues be at the end of a five-year period?

b) What would the future worth of those same revenues be if over the period of five years the revenue increases by 10%, assuming the same interest rate of 7%?

c) If the investment made increases costs by $1,000 in the first year, increasing $200 annually over the period of ten years, what is the present worth of these costs?

Reference no: EM131247946

Questions Cloud

Security code review for a system : Discuss how a security code review for a system written in C would be similar to and different from a security code review of a system written in Python or Ruby.

How to identify crucial stakeholders and key players : Provide an example of a time when to established a collective vision by utilizing the collective intelligence of all individuals involved. What process should we follow to integrate the input of a collective vision? How to identify Crucial Stakehold..

Determine the sending end current and sending end voltage : Determine the sending end current, sending end voltage, sending end power factor and transmission efficiency when supplying a balanced load of 10,000 kW at 66 kV, p.f. 0·8 lagging.

Security code review for an embedded system : Discuss how a security code review for an embedded system would be similar to and different from a security code review of a Web application containing the same number of lines of code.

What is the present value of those revenues : We are investing in a maintenance project that will increase annual revenues by $10,000 over ten years. What is the present value of those revenues, if the project is financed at 7% interest, compounded annually? What will the future worth of those r..

Solve logical equations in python programming language : How to effectively solve logical equations in the python programming language?

Who would be willing to purchase the product : Refer to Table 7-1. If the price of the product is $110, then who would be willing to purchase the product? Refer to Table 5-1. Which of the following is consistent with the elasticities given in Table 5-1?

Calculate the sales revenue-earn operating income : Head-First Company plans to sell 4,657 bicycle helmets at $75 each in the coming year. Variable cost is 60% of the sales price; contribution margin is 40% of the sales price. Calculate the sales revenue that Head-First must make to earn operating inc..

Cybercriminals and trust in the government : In 450 words please respond to the following based on attached video link: What is Hypponen's main point as it relates to cybercriminals and trust in the government?

User Account

All Pages