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Giant Ltd plans to invest in an investment project. The project is expected to have 4-years life. In the first year of production, the project is estimated to sell 10,500 units. The sales units will grow from year 2 onwards @ 10% p.a. The unit selling price is estimated to be $45/unit, inflating @4% p.a. from year 1 onwards.
What is the estimated amount of sales revenue for 4th year of production?
Please do not simply type out full questions and expect to be provided with a full answer.
You must have an answer in the same book in which you found the question, so ask about whatever it is in the answer that you are not clear about and I will explain.
How to account for inflation is, of course, explained in our free lectures.
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