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what would be the net present value of a microwave oven that costs $159 and will save you $68 a year in time and food away from home? assume an average return on your savings of 4 percent for five years

Respuesta :

NPV = PV of cost savings - Initial cost ($68 x 4.452) - $159 = $143.74

What do you mean by cost savings, exactly?

Cost savings refers to the benefit realized from taking actions to reduce an organization's overall asset expenditure, which directly affects its bottom line. Efforts to cut expenses can be made by boosting productivity and negotiating lower supply costs.

What are the six different cost reductions?

Budget savings, historical savings, index savings, ratio savings, RFP savings, and technical savings are the six main ways that a successful enterprise might save money. The difference between a budget and the actual business expenses is what is meant by budget savings.

What is the project's initial cost?

Initial cost is the amount of money needed for a facility's capital construction, refurbishment, or addition.

To Know more about  Initial cost

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