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Consider the following table of revenue and costs at the end of the year. Year Revenue Cost 1 1000 670 2 900 1100 3 600

Consider the following table of revenue and costs at the end of the year.

Year

Revenue

Cost

1

1000

670

2

900

1100

3

600

500

4

800

600

In addition there is a fixed cost of 200 at the beginning of year 1.

a.) Find the present value of the profit?

b.) Fine the future value of the profit (at the end of the fourth year)

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