Price Mart is considering outsourcing its billing operations. A consultant estimates that outsourcing should result in cash savings of $10,000 the first year, $16,000 for the next two years, and $19,000 for the next two years. Interest is at 10%. Assume cash flows occur at the end of the year. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Required:
Calculate the total present value of the cash flows. (Do
not round intermediate calculations. Round your final answer to
nearest whole dollar.)
Price Mart is considering outsourcing its billing operations. A consultant estimates that outsourcing should result in...
What is the correct answer? Incognito Company is contemplating the purchase of a machine that provides it with cash savings of $80,000 per year for five years. Interest is 8%. Assume the cash savings occur at the end of each year. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: Calculate the present value of the cash savings. (Round your final answer...
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