A New Computer Will Generate $1,000 in Net Revenue for a Firm

question 100

Multiple Choice

A new computer will generate $1,000 in net revenue for a firm during its first year,$500 during its second year,$250 during its third year,and nothing thereafter.If the interest rate is 10 percent (0.10) per year,what is the present value of the computer to the firm? (The first payment will be received at the end of this year. )

• A)$1,590.91
• B)$1,510.14
• C)$1,750.00
• D)$1,446.28
• E)$1,661.16

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