Environmental Management and Sustainable Development · Sustainable Development · 2 marks · Numerical answer
A manufacturing unit earns net profit Rs.6000/year for 15 years. Discount rate 8%/year. Find net present worth of these profits in rupees, as an integer.
For end-of-year uniform receipts, the present-worth factor is $[1-(1+i)^{-n}]/i$. Thus $PW=6000[1-(1.08)^{-15}]/.08=\mathbf{51357}$ rupees after rounding. This discounts each future annual profit;the undiscounted total90000 is not present worth.
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