A company is trying to decide how much to sell their new Widget that can save...
A company is trying to decide how much to sell their new Widget that can save $1,500/yr in energy costs. Their clients use a discount rate of 8% and wants the present value of the savings to pay for the system looking at only 4 years of savings. How much can they sell the product for?
Homework Answers
Present value of annuity=Annuity[1-(1+interest rate)^-time period]/rate
=1500[1-(1.08)^-4]/0.08
=1500*3.31212684
=$4968.19(Approx).
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A company is trying to decide how much to sell their new Widget
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7/ A company is trying to decide how much to sell their new Widget that can...
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