What is the present worth of the savings

Reference no: EM131944677

Question: The benefit of a revised production schedule for a seasonal manufacturer will not be realized until the peak summer months. Net savings will be dollar 1,000, dollar 1, 100, dollar 1, 200, dollar 1, 300, and dollar 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?

5 percent per year, compounded monthly?

5 percent per year, compounded daily?

Reference no: EM131944677

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