What is the present worth of the savings per unit

Reference no: EM13189044

A manufacturer of off-road vehicles is considering the purchase of dual -axis inclinometers for instalation in a new line of tractors. The distributor of the inclinometers is temporarily overstocked and is offering them at a 40% discount from the regular cost of $142. if the purchaser gets them now instead of 2 years from now, which is when they will be needed, what is the present worth of the savings per unit? The company would pay the regular price, if purchased in 2 years. Assume the interest rate is 10% per year.

Reference no: EM13189044

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