Question
Incognito Company is contemplating the purchase of a machine that provides it with net after-tax cash savings of $88,000 per year for five years. Interest
| Incognito Company is contemplating the purchase of a machine that provides it with net after-tax cash savings of $88,000 per year for five years. Interest is 10%. 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 $1andPVAD of $1)(Use appropriate factor(s) from the tables provided.) |
| Required: |
| Calculate the present value of the cash savings. |
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Essentials Of Accounting
Authors: Leslie Breitner, Robert Anthony
11th Edition
0132744376, 978-0132744379
