A company expects current operating costs for the next 10 years to increase by $604 per year starting 5 years from now. The company wants to reserve funds now to pay for the increased costs. How much must they put away if their MARR is 1.0%?

A company expects current operating costs for the next 10 years to increase by $604 per year starting 5 years from now. The company wants to reserve funds now to pay for the increased costs. How much must they put away if their MARR is 1.0%?

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 current operating costs for the next 10
years to increase by $604 per year starting 5 years from now.
The company wants to reserve funds now to pay for the
increased costs. How much must they put away if their MARR
is 1.0%?

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