Question
Your firm has taken on cost saving measures that will provide a benefit of $19,000 in the first year. These cost savings will decrease each
These cost savings will decrease each year at a rate of 8.7 percent forever. If the appropriate interest rate is 7.9 percent, what is the present value
of these savings?
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Get StartedRecommended Textbook for
Financial Management Principles and Applications
Authors: Sheridan Titman, Arthur Keown, John Martin
12th edition
133423824, 978-0133423822
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