Your company will generate $68,000 in annual revenue each year for the next seve
ID: 2810552 • Letter: Y
Question
Your company will generate $68,000 in annual revenue each year for the next seven years from a new information database. If the appropriate interest rate is 8.5 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 $68,000 in annual revenue each year for the next seven years from a new information database. If the appropriate interest rate is 8.5 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 savings=68000/1.085+68000/1.085^2.....68000/1.085^7
=68000/0.085*(1-1/1.085^7)
=$348058.9194
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