Determine the present value of these future savings

Reference no: EM13182355

A new widget, with a service life of four years, would save $50,000. in production costs each year. Using a 12.00% nominal annual interest rate, determine the highest price that could be justified for the widget, i.e., determine the present value of these future savings. Lump each year's savings at the end of the year. Work the problem again and take the saving at the end of each month.

Reference no: EM13182355

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