You developed a new product that had a profit of $404,918 at the end of the...

Question

Question

You developed a new product that had a profit of $404,918 at the end of the first year. Your marketing team believes sales wi

business economics

Answer 1

Answer #1

Present value of geometric series when I is equal to g is = C * N / (1+i)

P = 404918 * 8 / (1+0.06) = 3055984.91

Future worth = 3055984.91 * (1+0.06)^8 = 3055984.91 * 1.06^8 = 4870775.66 = 4870776 (Nearest Dollar)

Answer 2

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