you have created a novel reusable water bottle filtration system. when presenting I to the client...
you have created a novel reusable water bottle filtration system. when presenting I to the client , you have decided to do a present value/ present worth analysis , over 5 years with an interest rate of 20%. It includes a $141 per year every year ( years 1-5) befit (savings) from not needing to purchase plastic water bottles. Assume cost is positive and benefit is neagtive. what is the present vaule/ present worth of these yearly water savings? Please answer to the nearest whole number without including the dollar sign.
Homework Answers
Present value of savings = Annual savings*Present value annuity factor
= 141*PVAF(20%,5 Years)
= 141*2.991
=$421.731
I.e. 422
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