Incognito Company is contemplating the purchase of a machine that provides it with cash savings of $87,000 per year for five years. Interest is 10%. Assume the cash savings occur at the end of each year. Required: Calculate the present value of the cash savings. Note: Use tables, Excel, or a financial calculator. Round your final answer to the nearest whole dollar. (EV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) Present value
Incognito Company is contemplating the purchase of a machine that provides it with cash savings of $87,000 per year for five years. Interest is 10%. Assume the cash savings occur at the end of each year. Required: Calculate the present value of the cash savings. Note: Use tables, Excel, or a financial calculator. Round your final answer to the nearest whole dollar. (EV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) Present value
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Incognito Company is contemplating the purchase of a machine that provides it with cash savings of $87,000 per year for five years.
Interest is 10%. Assume the cash savings occur at the end of each year.
Required:
Calculate the present value of the cash savings.
Note: Use tables, Excel, or a financial calculator. Round your final answer to the nearest whole dollar. (EV of $1. PV of $1. FVA of $1.
PVA of $1. EVAD of $1 and PVAD of $1)
Present value](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8c8f8f38-b957-43cd-be1d-7f3a0b16f059%2Fb26ada03-cfd9-4785-8065-36a3e4a13685%2Fv61a93d_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Incognito Company is contemplating the purchase of a machine that provides it with cash savings of $87,000 per year for five years.
Interest is 10%. Assume the cash savings occur at the end of each year.
Required:
Calculate the present value of the cash savings.
Note: Use tables, Excel, or a financial calculator. Round your final answer to the nearest whole dollar. (EV of $1. PV of $1. FVA of $1.
PVA of $1. EVAD of $1 and PVAD of $1)
Present value
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