Homework Answers
Answer:
Present value = C * n/(1+I)
C = revenue = $1,000,000
N = number of years = 10 years
I = Interest rate = 10% = 0.10
Present value of revenue = 1,000,000 * 10 /(1 + 0.10)
= 1,000,000 * 10 / 1.10 = 9,090,909.09 = $9.09 million
Hence correct option: C] $9.09 million
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