Question
Consider a piece of equipment for which the expenditure at the beginning of period 1 is $100,000. Given that this is a cost, consider it
Consider a piece of equipment for which the expenditure at the beginning of period 1 is $100,000. Given that this is a cost, consider it as a negative in a net revenue framework. The net revenue at the end of year 1 is $20,000. The net revenue at the end of year 2 is $30,000. The net revenue at the end of year 3 is $40,000. The net revenue at the end of year 4 is $35,000. This includes revenue from operations and sale of the used equipment. The interest rate is 4%. What is the levelized net revenue with four equal payments at the end of years 1 to 4? T The annuity factor with a 4% nominal discount rate and four payments is given by
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