In the second year of a products life the cash flows


In the second year of a product's life, the cash flows expected are: marketing cost of $200,000, production cost of $300,000, and a revenue of $900,000.

At 6.7% discount rate, what is the present value (at time zero) of the net cash flow?

(assume all cash flows occur at the end of the year). (Provide two significant digits after the decimal point.)

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Operation Management: In the second year of a products life the cash flows
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