Calculate the total present value of the cash flows

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Question - Price Mart is considering outsourcing its billing operations. A consultant estimates that outsourcing should result in cash savings of $10,700 the first year, $16,700 for the next two years, and $19,700 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.

Reference no: EM132836977

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