(Ignore income taxes in this problem. ) Given the following data: Based on the data given,the annual cost savings would be:

Question

(Ignore income taxes in this problem. ) Given the following data:  Based on the data given,the annual cost savings would be:

Quizplus · Accepted Answer

The present value of the annual cost savings must be $12,430 given that the net present value is $430 and the present investment is $12,000.To find the annual cost savings you need to divide the present value of the annual cost savings by the present value factor ($12,430 F1F1F1S1F1F1F10 5.65);the annual cost savings equals $2,200.

(Ignore Income Taxes in This Problem