Consider the following:
Year 1 Revenue is 1000 and cost is 670
Year 2 Revenue is 900 and cost is 1100
Year 3 Revenue is 600 and cost is 500 and
Year 4 Revenue is 800 and cost is 600
In addition there is a fixed cost of 200 at the beginning of year 1.
- Find the present value of the profit?
- Find the future value of the profit (at the end of the fourth year).