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Tamarisk Corp. has an 8% required rate of return. Its considering a project that would provide annual cost savings of $58000 for 5 years. The
Tamarisk Corp. has an 8% required rate of return. Its considering a project that would provide annual cost savings of $58000 for 5 years. The most that Johnson would be willing to spend on this project is
| Year | Present Value of 1 at 8% | PV of an Annuity of 1 at 8% |
| 1 | 0.926 | 0.926 |
| 2 | 0.857 | 1.783 |
| 3 | 0.794 | 2.577 |
| 4 | 0.735 | 3.312 |
| 5 | 0.681 | 3.993 |
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College Accounting, Chapters 1-9
Authors: James A. Heintz
20th Edition
0538745223, 9780538745222
