Posted by **Tom** on Monday, April 28, 2008 at 12:12am.

Does anyone know how to calculate cost of savings when calculating the net present value? The NPV was given and I have to backed into the other figures. The only thing about cost savings provided is "25% reduction in direct material. The DM cost listed is $10. I tried using $2.50 by the # of units produced by that does not work

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