Essay
DON Corp. is contemplating the purchase of a machine that will produce cash savings of $20,000 per year for five years. At the end of five years, the machine can be sold to realize cash flows of $5,000. Interest is 12%. Assume the cash flows occur at the end of each year.
Required: Calculate the total present value of the cash savings.
Correct Answer:
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PVA = $20,000 × 3.60...View Answer
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Correct Answer:
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