A start-up in the retail market plans to invest $200,000 in advertising in its first start-up and reduce that amount by
Posted: Wed Jul 06, 2022 5:55 am
A start-up in the retail market plans to invest $200,000 inadvertising in its first start-up and reduce that amount by $20,000each year for the next five years. The company forecasts annual netrevenue, excluding advertising spend, of $400,000 in the firstyear. Revenue is also expected to increase by $50,000 per year fromthe second through fifth periods. Calculate the uniform annualvalue for the net cash flow of this retail company for an interestrate of 8% per year. (Answer $329253.01)