value 100 points Your company will generate 71000 in annual

value: 1.00 points Your company will generate $71,000 in annual revenue each year for the next seven years from a new information database. If the appropriate interest rate is 8.50 percent, what is the present value of the savings? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Present value References eBook & Resources ulit

Solution

Present value of annuity=Annuity[1-(1+interest rate)^-time period]/rate

=$71000[1-(1.085)^-7]/0.085

=$71000*5.11851352

which is equal to

=$363,414.46(Approx).