Consider the following table of revenue and costs at the end of the year.
|
Year
|
Revenue
|
Cost
|
|
1
|
1000
|
670
|
|
2
|
900
|
1100
|
|
3
|
600
|
500
|
|
4
|
800
|
600
|
In addition there is a fixed cost of 200 at the beginning of year 1.
a.) Find the present value of the profit?
b.) Fine the future value of the profit (at the end of the fourth year)