Question

Windsor Corp. has an 8% required rate of return. It’s considering a project that would provide annual cost savings of $42000 for 5 years. The most that Johnson would be willing to spend on this project is_________.

Answer 1

Answer:

The most that Johnson would be willing to spend on this project is $167706.

Explanation:

the most that Johnson would be willing to pay

$42000*3.993

= 167706

Therefore, The most that Johnson would be willing to spend on this project is $167706.