Justin walker enterprises is considering outsourcing

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Justin Walker Enterprises is considering outsourcing its billing operations. A consultant estimates that outsourcing should result in after-tax cash savings of $9,000 the first year, $15,000 for the next years, and $18,000 for the next two years. Interest is at 12%. Assume cash flows occur at the end of the year. Calculate the total present value of the cash flows.

Reference no: EM13497326

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