Reference no: EM131448473
The benefit of a revised production schedule for a seasonal manufacturer will not be realized until the peak summer months. Net savings will be $1,000, $1,100, $1,200, $1,300, and $1,400 at the ends of months 4, 5, 6, 7, and 8, respectively. It is now the beginning of month 1. Assume 365 days per year, 30 days per month. What is the present worth (PW) of the savings if nominal interest is?
a. 5 % per year, compounded monthly?
b. 5 % per year, compounded daily?
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: The benefit of a revised production schedule for a seasonal manufacturer will not be realized until the peak summer months. Net savings will be $1,000, $1,100, $1,200, $1,300, and $1,400 at the ends of months 4, 5, 6, 7, and 8, respectively. It is no..
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