Question
What would be the net present value of a microwave oven that costs $175 and will save you $84 a year in time and food
What would be the net present value of a microwave oven that costs $175 and will save you $84 a year in time and food away from home? Assume an average return on your savings of 5 percent for 6 years. (Hint: Calculate the present value of the annual savings, then subtract the cost of the microwave.) Use Exhibit 1-D. (Round PVA factor to 3 decimal places and final answer to 2 decimal places.)
| Net Present Value | ??? |
The amount a person would have to deposit today to be able to take out $500 a year for 5 years from an account earning 7 percent. (Round your PVA factor to 3 decimal places and final answer to 2 decimal places.)
| Deposit | ? |
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Intermediate Accounting IFRS
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
3rd edition
978-1119372936
