A coal-fired power plant has upgraded an emission control valve. The modification costs only $5,000 and is expected to last 7 years. The maintenance cost is expected to be high at $2000 the first year, increasing by 11% per year thereafter. Determine the equivalent present worth of the modification and maintenance cost by hand at 8% per year.

A coal-fired power plant has upgraded an emission control valve. The modification costs only $5,000 and is expected to last 7 years. The maintenance cost is expected to be high at $2000 the first year, increasing by 11% per year thereafter. Determine the equivalent present worth of the modification and maintenance cost by hand at 8% per year.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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5.)show complete solution, final answer should be in two decimal only, i will automatically give upvote.
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4.)show complete solution, final answer should be in two decimal only, i will automatically give upvote.
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