Question

Pittsburgh Custom Products (PCP) purchased a new machine for ram-cambering large I beams. PCP expects to bend 55 beams at $1,800 per beam in each of the first 3 years, after which it expects to bend 100 beams per year at $2,900 per beam through year 9. If the company’s minimum attractive rate of return is 16% per year, what is the present worth of the expected revenue?

The present worth of the expected revenue is_______ $

Answer 1

Reuenue cach of 1 years 55 X180O $99,000 1. Revenue nelt yeare each 100 x 290O , २१७००० Present wooth (i= 16%) 99,000 (14 i3-11: icitis (1ti)-) { ১৭০,০0০ Li citija (r.16²-1 116 |+ ১৭০,০০০ 1.16-) 99,000 016/1-16) O 16(1.16] s the $906,932.8 215 anewer