What is the present worth of the savings

Reference no: EM132158700

Question: The market volume for widgets is increasing by 15% per year from current profits of $200,000. Investing in a design change will allow the profit per widget to stay steady; otherwise, it will drop 3% per year. The interest rate is 10%. What is the present worth of the savings over the next 5 years? Over the next 10 years?

Reference no: EM132158700

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