Samson Inc

question 109

Short Answer

Samson Inc. is contemplating the purchase of a machine that will provide it with cash savings of $100,000 per year for eight years. Interest is 10%. Assume the cash savings occur at the end of each year.
Required: Calculate the present value of the cash savings.

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Definitions:

Equality

The state of being equal, especially in status, rights, and opportunities.

Compromise

A method of resolving a disagreement where each party gives up something that was originally wanted to reach a mutually acceptable solution.

Life Fairness

The subjective assessment of the balance or equity of life circumstances and events.

Factor Analysis

A statistical method used to describe variability among observed, correlated variables in terms of a potentially lower number of unobserved variables called factors.