Cheryl Peck purchased a computer network for her classroom. The computer network cost
$100,000. She estimates that she can charge $500 for one session in the classroom. Cheryl knows
that enrollment will increase over time.
She estimates 50 students the first year, 75 students the
second year, 100 students the third year, and 150 students the fourth year. If her cost of capital is
12 percent, what is the approximate present value of the benefits?
A) $187,500 B) $135,471
C) $119,156 D) Cannot tell without more information.
B
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Which type of social media user posts comments, ratings, and reviews of products and services on blogs and forums?
a. Critics b. Spectators c. Joiners d. Inactives
What is one serious risk that social media pose to promotional messages?
A) Social media leave permanent records of a firm's MPR missteps. B) Firms may not use enough social media because of the high cost. C) Social media are fringe media, and reputable firms do not use them. D) People pay little attention to social media because they have been around a very long time. E) Most public relations practitioners do not know how to use social media.