Having trouble with word problem:
Planned Acquisition cost $2.1M
Salvage Value $0
16% discount rate
savings = year end
Savings:
year 1 150k
year 2 175k
year 3 300K
year 4 400k
year 5 475K
year 6 600K
year 7 725K
year 8 825K
year 9 875K
year 10 975K
total savings: $5.5M
Savings over acquisition cost $3.4M
Net Present Value ?
Payback in whole years?