Your company will generate $65,000 in annual revenue each year for the next eigh

Question

Your company will generate $65,000 in annual revenue each year for the next eight years from a new information database. If the appropriate interest rate is 8.25 percent, what is the present value of the savings? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Your company will generate $65,000 in annual revenue each year for the next eight years from a new information database. If the appropriate interest rate is 8.25 percent, what is the present value of the savings? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Explanation / Answer

Hi,

Please find the answer as follows:

Nper = 8 (indicates the period)

PMT = 65000 (indicates annual revenue)

Rate = 8.25% (indicates the rate of interest)

FV = 0 (indicates the future value, if any)

PV = ? (indicates the present value)

Present Value = PV(Rate,Nper,PMT,FV) = PV(8.25%,8,65000,0) = 370013.62

Thanks.

Related Questions

Navigate

• Browse (All)
• Browse Y
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.