Accounting Chapter 16 Homework Data Input Annual Savings Acquisition Cost Lifetime

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subject Authors David Platt, Ronald Hilton

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DATA INPUT
Annual Savings 27,000$
Acquisition Cost 129,750$
Lifetime of lighting system (years) 8
SOLUTION
Present Value of
Discount Rate Annuity Discount Factor Annual Savings Annual Savings Acquisition Cost Net Present Value
8% 5.747 27,000$ 155,159$ 129,750$ 25,409$

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