Price Mart is considering outsourcing its billing operations. A consultant estimates that outsourcing should result in cashsavings of $9,500 the first year, $15.500 for the next two years, and $18,500 for the next two years. Interest is at 10%. Assumecash flows occur at the end of the year.Required:Calculate the total present value of the cash flows.Note: Use tables, Excel, or a financial calculator. Do not round intermediate calculations. Round your final answer tonearest whole dollar. (FV of $1. PV of $1. FVA of $1. PVA of $1, EVAD of $1 and PVAD of $1)Total present value of the cash flows

By estimating the present value of these future cash flows, the present value assists people and…

rice Mart is considering outsourcing its billing operations. A consultant estimates that outsourcing should result in cash avings of $9,500 the first year, $15.500 for the next two years, and $18,500 for the next two years. Interest is at 10%. Assume ash flows occur at the end of the year.

rice Mart is considering outsourcing its billing operations. A consultant estimates that outsourcing should result in cash avings of $9,500 the first year, $15.500 for the next two years, and $18,500 for the next two years. Interest is at 10%. Assume ash flows occur at the end of the year.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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