equivalent present worth of the revenue this company will generate from these sources of revenue over this 10 year period.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 17EA: Gardner Denver Company is considering the purchase of a new piece of factory equipment that will...
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 local delivery service is looking to increase their capacity by hiring more workers and purchasing new vehicles. They anticipate their yearly revenue to increase by $45,000 each year for the next 10 years. Additionally, they anticipate having an additional $12,500 every 3 years starting in year 2 due to local event that requires a significant amount of shipping. Assuming an interest rate of 6%, compute the equivalent present worth of the revenue this company will generate from these sources of revenue over this 10 year period.

Answer: $359508.75

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