A computer platform requires $270,000 initial investment and additional $60,000 after 10 years. The annual software maintenance costs are $3,000 for the first 4 years and $16,000 thereafter. In addition, there is expected to be a recurring major upgrade cost of 27,000 every 13 years. Assuming 5% interest rate, calculate the capitalized value of the project's costs

A computer platform requires $270,000 initial investment and additional $60,000 after 10 years. The annual software maintenance costs are $3,000 for the first 4 years and $16,000 thereafter. In addition, there is expected to be a recurring major upgrade cost of 27,000 every 13 years. Assuming 5% interest rate, calculate the capitalized value of the project's costs

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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