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1.From chapter 19: Present Value of a firm Quantity sold in first year: 20K units Price per unit: 100$ Cost per unit = 60$ Quantity

1.From chapter 19: Present Value of a firm

Quantity sold in first year: 20K units

Price per unit: 100$

Cost per unit = 60$

Quantity sold in second year: 23K units

Price per unit: 105$

Cost per unit = 63$

Discount rate = 4.0%

What is the present value of the firm?

a.$1.32M

b.$0.94M

c.$1.66M

d.$2.07M

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