A Large Conglomerate Estimates That a New Plant Will Yield $5000 - 250 t$

question 162

Short Answer

A large conglomerate estimates that a new plant will yield an annual rate of return of $5000 - 250 t$ thousand dollars. If the interest rate is 9%, what is the present value of the income generated in the first three years of the plant's operation?
Enter just an integer (no units) representing the amount to the nearest dollar.

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Definitions:

Prepaid Asset

Expenses paid in advance for future benefits, such as insurance or rent, recognized as assets until they are utilized.

Prepaid Subscriptions

Payments made in advance for subscription-based services or products, recognized as assets until the services or products are received.

Calendar-Year

A one-year period that begins on January 1 and ends on December 31, used by businesses for accounting and tax purposes.

Adjustment

An adjustment in accounting refers to entries made in journal accounts that correct errors or account for expenditures that have not been recorded through the usual processes.