Business, 18.09.2021 05:50 zuleromanos
Southern California Publishing Company is trying to decide whether or not to revise its popular textbook Financial Psychoanalysis Made Simple. It has estimated that the revision will cost $85,000. Cash flows from increased sales will be $20,500 the first year. These cash flows will increase by 4 percent per year. The book will go out of print five years from now. Assume that the initial cost is paid now and revenues are received at the end of each year. If the company requires a return of 10 percent for such an investment, what is the value today of the cash flows
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Southern California Publishing Company is trying to decide whether or not to revise its popular text...
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