A Major Electronics Manufacturer Expects to Generate Additional Revenue from Its

question 21

Short Answer

A major electronics manufacturer expects to generate additional revenue from its recently won government contract. The company forecasts that the revenue will be $190 million in the first year, but will decline by $2 million every year for the next 3 years. What is the present worth of total revenue at an interest rate of 18% per year?

---

Definitions:

Adaptation

The process by which an organism becomes better suited to its environment.

Survival

The state of continuing to live or exist, typically in spite of an ordeal, danger, or hardship.

Emotions

Complex psychological states that involve physiological arousal, expressive behaviors, and conscious experience.

Observable Behaviours

Actions or reactions of an individual, in response to external or internal stimuli, that are visible and measurable.