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A start-up internet service provider expects to lose money in each of the first four years. Losses are projected to be $50 million in year
A start-up internet service provider expects to lose money in each of the first four years. Losses are projected to be $50 million in year one, $40 million in year two, $30 million in year three and $5 million in year four. An interest rate of 10% per year is used. A) The present worth of the losses for the first three years is nearest to: A) $90,124,000 B) $101,054,000 C) $124,345,000 D) $147,636,000 B) The present worth of the losses for all four years is nearest to: A) $101,054,000 B) $104,244,000 C) $110,395,000 D) $124,345,000 C) The equivalent uniform annual worth of the losses through year four is nearest to: A) $29,533,000 B) $30,621,000 C) $31,882,000 D) $32,889,000 D) In order to recover the losses by the end of year nine, the company's equivalent uniform annual profit in years five through nine must be nearest to: A) $25,631,000 B) $36,922,000 C) $44,288,000 D) $51,369,000
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