Question

Using the present value tables in Exhibits 26-3 and 26-4, If the plane’s cost is $306,840 and it can likely be sold in six years for $100,000, what minimum annual savings in transportation costs is needed in order to make the plane a good investment? (Round Present value factor to 3 decimal places and your final answer to nearest whole dollar)

Answer 1

Answer:

The answer is $67807

Explanation:

we want to find minimal annual savings we will therefore use financial calculator. for figures we do not have ie: I/YR interest and PMT payment we will compute 0 for those figures. the explanation is below in an attachment