What would be the net present value of a microwave oven that costs $234 and will save you $69 a year in time and food away from home? Assume an average return on your savings of 4 percent for five years. (Exhibit 1-A. Exhibit 1-8. Exhibit 1-C. Exhibit 1-D) Note: Use appropriate factor(s) from the tables provided. Round time value factor to 3 decimal places and answer to 2 decimal places. Net present value

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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What would be the net present value of a microwave oven that costs $234 and will save you $69 a year in time and food away from
home? Assume an average return on your savings of 4 percent for five years. (Exhibit 1-A. Exhibit 1-8. Exhibit 1-C. Exhibit 1-D)
Note: Use appropriate factor(s) from the tables provided. Round time value factor to 3 decimal places and answer to 2 decimal
places.
Net present value
Transcribed Image Text:What would be the net present value of a microwave oven that costs $234 and will save you $69 a year in time and food away from home? Assume an average return on your savings of 4 percent for five years. (Exhibit 1-A. Exhibit 1-8. Exhibit 1-C. Exhibit 1-D) Note: Use appropriate factor(s) from the tables provided. Round time value factor to 3 decimal places and answer to 2 decimal places. Net present value
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