A company expects the cost of equipment maintenance to be $5,000 in year one, $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) $38,220 B $51,790 (C) $42,170 (D) $46,660
A company expects the cost of equipment maintenance to be $5,000 in year one, $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) $38,220 B $51,790 (C) $42,170 (D) $46,660
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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18. With solution please
Transcribed Image Text:A company expects the cost of equipment maintenance to be $5,000 in year one, $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 $38,220
B) $51,790
c) $42,170
D) $46,660
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