Question
Consider a piece of equipment for which the expenditure at the beginning of period 1 is $15,000. Given that this is a cost, consider it
Consider a piece of equipment for which the expenditure at the beginning of period 1 is $15,000. 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 $2,000.
The net revenue at the end of year 2 is $4,000.
The net revenue at the end of year 3 is $6,000.
The net revenue at the end of year 4 is $10,000. This includes revenue from operations and sale of the used equipment.
The interest rate is 5%.
What is the levelized net revenue with four equal payments at the end of years 1 to 4 if the annuity factor is given by
Consider a piece of equipment for which the expenditure at the beginning of period 1 is $15,000 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 $2.000. The net revenue at the end of year 2 is $4,000. The net revenue at the end of year 3 is $6,000 The net revenue at the end of year 4 is $10,000. This includes revenue from operations and sale of the used equipment. The interest rate is 5%. What is the levelized net revenue with four equal payments at the end of years 1 to 4 if the annuity factor is given by (1.05)4 053.546Step by Step Solution
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