Johnson corp. has an 8% required rate of return

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Johnson Corp. has an 8% required rate of return. It's considering a project that would provide annual cost savings of $50,000 for 5 years. The most that Johnson would be willing to spend on this project is
Present Value PV of an Annuity
Year of 1 at 8% of 1 at 8%
1 .926 .926
2 .857 1.783
3 .794 2.577
4 .735 3.312
5 .681 3.993
a. $125,910.
b. $165,600.
c. $199,650.
d. $34,050.
What is the answer

Reference no: EM13333947

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