You are thinking of building a new machine that will save you $5,000 in the first year. The machine will then begin to wear out so that the savings decline at a rate of 4% per year forever. What is the present value of the savings if the interest rate s 10% per year? The present value of the savings is $. (Round to the nearest dollar.)

You are thinking of building a new machine that will save you $5,000 in the first year. The machine will then begin to wear out so that the savings decline at a rate of 4% per year forever. What is the present value of the savings if the interest rate s 10% per year? The present value of the savings is $. (Round to the nearest dollar.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 35P

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