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Price Mart Is Considering Outsourcing Its Billing Operations

question 97

Essay

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


Definitions:

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A cosmetic product applied to fingernails or toenails to color, protect, or enhance their appearance.

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An economic diagram that maps out the journey of money as it passes through markets, involving both households and businesses.

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