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What would be the net present value of a microwave oven that costs $168 and will save you $77 a year in time and food
What would be the net present value of a microwave oven that costs $168 and will save you $77 a year in time and food away from home? Assume an average return on your savings of 4 percent for 5 years. (Hint:Calculate the present value of the annual savings, then subtract the cost of the microwave.) UseExhibit 1-D.(Round PVA factor to 3 decimal places and final answer to 2 decimal places.)
Exhibit 1-D is just the PV tables which are accessible online.
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