The following series of revenues and expenses in $1000 units were recorded by a mobile phone business. At a return rate of 10% per year, (a) determine the net future worth in year 10. (b) Did the owners make their expected 10% return? How do you know?
 FIGURE 1.png)
(a) F = -2500(F/P,10%,10) + (700 – 200)(F/A,10%,4)(F/P,10%,6) + (2000 – 300)(F/A,10%,6)
= -2500(2.5937) + (500)(4.6410)(1.7716) + (1700)(7.7156)
= $10,743.268
Actual worth today is $10,743,268
(b) Yes, because the F value >> 0
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