Essay
Touche Manufacturing is considering a rearrangement of its manufacturing operations. A consultant estimates that the rearrangement should result in cash savings of $6,000 the first year, $10,000 for the next two years, and $12,000 for the next two years. Interest is at 12%. Assume cash flows occur at the end of the year.
Required: Calculate the total present value of the cash flows.
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PV of future cash flows:
Year Cash Flow ...View Answer
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Correct Answer:
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Year Cash Flow ...
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