Problem
TekSystems is a manufacturer ofvertical compactors, and it is examining itscash flowrequirements for the next 5years. Thecompany expects to replaceoffice machinesand computer equipment atvarious timesover the 5-year planningperiod. Specifically, the company expectsto spend$9000 two years from now, $8000 threeyears from now, and $5000 fiveyears fromnow. What is the present worth of the planned expenditures at an interest rateof 8%per year?