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Cava Foods (CAVA) is evaluating the revenues expected to be generated by a new product. They will evaluate it as if the product will generate
Cava Foods (CAVA) is evaluating the revenues expected to be generated by a new product. They will evaluate it as if the product will generate $23 million per year in revenues for the first 10 years (starting 1 year from now), but then revenues will decrease by 5.3% per year forever after the 10th year. What is the present value of the revenue stream if the revenues are recognized at the end of each year, and if the relevant discount rate is 15.5%? Enter answer in millions of dollars, rounded to the nearest tenth, as in "12.3" million
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