A company expects the cost of equipment maintenance to be s5,000 in year one, s$5,500 in year two, and amounts increasing by $500 per year through year 10. At an interest rate of 10% per year, the present worth of the maintenance cost is nearest to A $42,170 B $51,790 $46,660 D $38,220

A company expects the cost of equipment maintenance to be s5,000 in year one, s$5,500 in year two, and amounts increasing by $500 per year through year 10. At an interest rate of 10% per year, the present worth of the maintenance cost is nearest to A $42,170 B $51,790 $46,660 D $38,220

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

A company expects the cost of equipment maintenance to be $5,000 in year one, s$5,500 in year two, and amounts increasing by
$500 per year through year 10. At an interest rate of 10% per year, the present worth of the maintenance cost is nearest to
A) $42,170
B $51,790
$46,660
D) $38,220

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