Question
An extra tractor will lead to an increase in revenue for a farmer in successive years of 500, 4000, 3,000, 3,000 and 1,000, after which
An extra tractor will lead to an increase in revenue for a farmer in successive years of £500, £4000, £3,000, £3,000 and £1,000, after which the tractor is sold for £1,000. Assuming that the first revenue is treated as current and the interest rate is 8 per cent, what is the present value of the extra income stream?
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Microeconomics Theory and Applications
Authors: Edgar K. Browning, Mark A. Zupan
12th edition
9781118920060, 1118758870, 1118920066, 978-1118758878
