A major electronics manufacturer expects to generate additional revenue from its

Question

A major electronics manufacturer expects to generate additional revenue from its recently won government contract. The company forecasts that the revenue will be $101,000,000 in the first year, but will decline by $2,000,000 every year for the next 3 years. What is the present worth of total revenue at an interest rate of 18% per year?  
A major electronics manufacturer expects to generate additional revenue from its recently won government contract. The company forecasts that the revenue will be $101,000,000 in the first year, but will decline by $2,000,000 every year for the next 3 years. What is the present worth of total revenue at an interest rate of 18% per year?  

Explanation / Answer

present worth = total revenue-initial

= 165560000-101000000 = 64560000

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