How much can Azco Autosystems, Inc., afford to spend on an energy management system if the software will save the company $21,30

Question

2 years ago

13

0 per year for the next 5 years

1 answer:

ivann1987 [24] · Answer 1 · 2023-01-04T21:55:43+03:00

The amount that that Azco Autosystems, Inc., can afford to spend on an energy management system is $80,744.

<h3>Present value</h3>

Using this formula

Present Value = A(P/A, 10%, 5)

Where:

A=$21,300

(P/A, 10%, 5)=3.79079

Let plug in the formula

Present Value = 21,300 (P/A, 10%,5)

Present Value = 21,300 (3.79079)

Present Value =80,743.8

Present Value = $80,744 (Approximately)

Inconclusion the amount that that Azco Autosystems, Inc., can afford to spend on an energy management system is $80,744.

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