The Swell Computer Company Has Developed a New Line of Desktop

question 69

Essay

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?

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Definitions:

Instructions

Comprehensive instructions on how to perform, use, or put together a specific task or item.

Proposals

Formal offers or plans submitted for consideration, acceptance, or action to others.

Investment Proposals

Documentation presented to potential investors or partners outlining the details, risks, and potential returns of a proposed investment.

Grant Proposals

Written applications outlining a project or program for which funding is sought, detailing objectives, methods, and budget.