Answer:
Question 6)
Given
Monthly revenue R=$2000
Number of years =8 years
So n=8*12=96 months
Interest rate=12% per annum
r=12%/12=1%
So PV of cash flow= R*(1-(1+r)^-n)/r=2000*(1-(1+1%)^-96)/1%=$123,055.41
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