Asked by Anonymous
Your company will generate $68,000 in an- nual revenue each year for the next seven years from a new information database. If the appropriate interest rate is 8.5 percent, what is the present value of the savings?
Answers
Answered by
Tomas the DankAsnwer
I'm going to use the BAII Plus calculator for my answer. So hopefully it makes sense.
PMT = 68,000
I/Y = 8.5
N = 7
Compute the PV to get = $340,058.92
As a note, the number will come out negative in the calculator. That's fine, it's just considering this as a cashflow out, but you want to write it as positive.
PMT = 68,000
I/Y = 8.5
N = 7
Compute the PV to get = $340,058.92
As a note, the number will come out negative in the calculator. That's fine, it's just considering this as a cashflow out, but you want to write it as positive.
Answered by
Tomas the DankAsnwer
I'm dumb as @#%& and typed the PV in wrong. It's supposed to be:
$348,058.92
Sorry....
$348,058.92
Sorry....
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