In: Accounting
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%?
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 |