American Gas Products manufactures a device called a Can-Emitor that empties the contents of old aerosol cans in 2 to 3 seconds. This eliminates having to dispose of the cans as hazardous wastes. If a certain paint company can save $75,000 per year in waste disposal costs, how much could the company afford to spend now on the Can-Emitor if it wants to recover its investment in 3 years at an interest rate of 20% per year?

$157,986.11

Explanation:

Given that

Amount = $75,000

Number of years = 3

Interest rate = 20%

The computation of the present value is shown below:-

Here we will use the P/A factor which is here

Present value = Amount × (1 + Interest rate)^number of years - 1 ÷ (Interest rate × (1 + Interest rate)^Number of years

= $75,000 × ((1 + 20%)^3 - 1) ÷ (0.20 × (1 + 0.20)^3)

= $75,000 × (0.728  ÷ 0.3456)

= $75,000 × 2.106481481

= $157,986.1111

or

= $157,986.11

Therefore for computing the present value we simply applied the above formula.

if it is for a job, then you should learn everything you can about the job, like what does it involve, what qualification is required and how you are the right person for that job. dress appropriately for the interview. get plenty of rest the night before. good luck!

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