Price Mart is considering outsourcing its billing operations. A consultant estimates that outsourcing should result in cash savings of $9,100 the first year, $15,100 for the next two years, and $18,100 for the next two years. Interest is at 10%. Assume cash flows occur at the end of the year. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: Calculate the total present value of the cash flows.

Price Mart is considering outsourcing its billing operations. A consultant estimates that outsourcing should result in cash savings of $9,100 the first year, $15,100 for the next two years, and $18,100 for the next two years. Interest is at 10%. Assume cash flows occur at the end of the year. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: Calculate the total present value of the cash flows.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 1PA: Your company is planning to purchase a new log splitter for is lawn and garden business. The new...

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Price Mart is considering outsourcing its billing operations. A consultant estimates that outsourcing should result in cash savings of $9,100 the first year, $15,100 for the next two years, and $18,100 for the next two years. Interest is at 10%. Assume cash flows occur at the end of the year. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: Calculate the total present value of the cash flows. (Do not round intermediate calculations. Round your final answer to nearest whole dollar.)
Price Mart is considering outsourcing its billing operations. A consultant estimates that outsourcing should result in cash savings 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 cash 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 to nearest 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
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