A company developed a new product that is projected to have $575,000 in sales in year one. These sales projections grow by 6% a year through year 8. What is the future value of sales 8 years from now. The company uses a MARR of 6% per quarter. Interperiod cashflows earn prorated interest.

A company developed a new product that is projected to have $575,000 in sales in year one. These sales projections grow by 6% a year through year 8. What is the future value of sales 8 years from now. The company uses a MARR of 6% per quarter. Interperiod cashflows earn prorated interest.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

A company developed a new product that is projected
to have $575,000 in sales in year one. These sales
projections grow by 6% a year through year 8. What is
the future value of sales 8 years from now. The
company uses a MARR of 6% per quarter. Interperiod
cashflows earn prorated interest.

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