Verizon Communications said it plans to spend $22.9 billion to expand its fiber-optic Internet and television network so that it can compete with cable-TV providers like Comcast Corp. If the company attracts 950,000 customers in year one and grows its customer base by a constant amount of 15% per year, what is the future worth of the total subscription income in year 5? Estimates indicate that income will average $800 per customer per year. Assume Verizon uses a MARR of 10% per year.

Verizon Communications said it plans to spend $22.9 billion to expand its fiber-optic Internet and television network so that it can compete with cable-TV providers like Comcast Corp. If the company attracts 950,000 customers in year one and grows its customer base by a constant amount of 15% per year, what is the future worth of the total subscription income in year 5? Estimates indicate that income will average $800 per customer per year. Assume Verizon uses a MARR of 10% per year.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter4: Financial Planning And Forecasting

Section: Chapter Questions

Problem 6P

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