Question
Can anyone help me with this problem? I can't do it right and the answer I got from Chegg was hard to understand... Southern California
Can anyone help me with this problem? I can't do it right and the answer I got from Chegg was hard to understand...
Southern California Publishing Company is trying to decide whether to revise its popular textbook, Financial Psychoanalysis Made Simple. The company has estimated that the revision will cost $85,000. Cash flows from increased sales will be $20,500 the first year. These cash flows will increase by 4 percent per year. The book will go out of print five years from now. Assume that the initial cost is paid now and revenues are received at the end of each year. If the company requires a return of 10 percent for such an investment, calculate the present value of the cash inflows of the project. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
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