Standby power for a manufacturing firm is currently produced using​ diesel-powered generators. In three years the company can switch to natural​ gas-powered generators. The company believes it can save ​$29,02 per year through year 7. If the company uses an interest rate of 5​%, what is the present value at time 0 of the projected savings that will occur in years 3 through 7​?

Cornerstones of Cost Management (Cornerstones Series)
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Chapter19: Capital Investment
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Standby power for a manufacturing firm is currently produced using​ diesel-powered generators. In three years the company can switch to natural​ gas-powered generators. The company believes it can save ​$29,02 per year through year 7. If the company uses an interest rate of 5​%, what is the present value at time 0 of the projected savings that will occur in years 3 through 7​?

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