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Solution
Solution
Year 1:
Year 1:
Year 2:
Revenue2 = $3,375,000
Cost2 = $400,000
Year 3:
PV=∑t=110(1.10)tCFt
PV≈−27,272,727.27+2,256,097.56+2,322,585.38+2,204,073.02+…+PV10
PV≈−27,272,727.27+2,256,097.56+2,322,585.38+2,204,073.02+1,895,904.8
5+1,627,620.24+1,398,243.35+1,198,731.68+1,022,634.81+865,038.55
PV ≈ $3,385,315.05