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Price Mart is considering outsourcing its billing operations. A consultant estimates that outsourcing should result in cash savings of $9,100 the first year, $15,100 for
Price Mart is considering outsourcing its billing operations. A consultant estimates that outsourcing should result in cash savings of $9,100 the first year, $15,100 for the next two years, and $18,100 for the next two years. Interest is at 10%. Assume cash flows occur at the end of the year.
Required:
Calculate the total present value of the cash flows.
Price Mart is considering outsourcing its billing operations. A consultant estimates that outsourcing should result in cash savings of $9,100 the first year, $15,100 for the next two years, and $18,100 for the next two years. Interest is at 10%. Assume cash flows occur at the end of the year.
Required:
Calculate the total present value of the cash flows.
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