Friday, August 5, 2011

If the interest rate is 5%, Yoyo would be willing to pay...?

Yoyo's Frozen Yogurt, Inc. is thinking of building a new warehouse. They believe that this will given them $50,000 of additional revenue at the end of one year, $60,000 additional revenue at the end of two years, and $70,000 in additional revenue at the end of three years. If the interest rate is 5 percent, Yoyo would be willing to pay

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