The Swell Computer Company has developed a new line of desktop computers. It is estimated that the cash returns generated by the new product line will be $800,000 per year for the next five years, and then $500,000 per year for 3 years after that (the cash returns occur at the end of each year). At a 9% interest rate, what is the present value of these cash returns?
Solve as the sum of two annuities: one of $500,000 per period for 8 periods, and one of $300,000 per period for 5 periods.
Definitions:
Millennials
A generational cohort that follows Generation X and precedes Generation Z, typically defined as people born from the early 1980s to the mid-1990s to early 2000s.
Optimistic
A mindset and attitude characterized by a positive outlook and expectation that good things will happen in the future.
Proactive
Describes an approach characterized by taking action in advance to deal with an expected difficulty or opportunity.
Emotional Regulation
The process by which individuals influence their emotions, how they experience them, and how they express them to others.
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