Your company will generate $71,000 in annual revenue each year for the next seve
ID: 2737789 • Letter: Y
Question
Your company will generate $71,000 in annual revenue each year for the next seven years from a new information database. If the appropriate interest rate is 8.75 percent, what is the present value of the savings? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)
Your company will generate $71,000 in annual revenue each year for the next seven years from a new information database. If the appropriate interest rate is 8.75 percent, what is the present value of the savings? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)
Explanation / Answer
Present value of the savings = Cash Inflows * PVAF ( 8.75%,7 years)
= 71000*5.0754 i.e 360357.02
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