Touche Manufacturing Is Considering a Rearrangement of Its Manufacturing Operations

question 56

Essay

Touche Manufacturing is considering a rearrangement of its manufacturing operations.A consultant estimates that the rearrangement should result in after-tax cash savings of $6,000 the first year,$10,000 for the next two years,and $12,000 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:

High Blood Pressure

A condition where the blood moves through the arteries at a higher pressure than what is considered normal, potentially leading to health issues.

Exercise

Physical exertion or activity done to maintain or improve health and fitness.

Sexual Expression

The ways in which individuals convey their sexuality or sexual feelings, which can vary widely across culture, time, and individual preference.

Heterosexual Women

Women who are romantically and sexually attracted to men.