A company had a steady revenue of $77,791. They expects revenue to decrease by $8,783 over...

A company had a steady revenue of $77,791. They expects revenue to decrease by $8,783 over the next 4 years. What is the total expected revenue worth right now if the company's MARR is 2%?

Expert Solution

Total expected revenue worth right now if the company's MARR is 2% = 213.425

Explanation

	Revenue in year 1 = $(77,791 - 8,783) = $69,008

	Total expected revenue worth right now if the company's MARR is 2%

Year	Revenue	Present Value	Discounted revenue
		Factor at 2%
	(A)	(B)	(A) x (B)
1	$ 69,008.00	0.9804	$ 67,655.00
2	$ 60,225.00	0.9612	$ 57,888.00
3	$ 51,442.00	0.9423	$ 48,474.00
4	$ 42,659.00	0.9238	$ 39,408.00
			$ 213,425.00

ekkarill92 answered 1 year ago

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