A Pump manufacturer expects its materials cost to be $1,000,000 this quarter and to increase by $100,000 each quarter for the nest 4 years. What is the present worth of the costs for a 4-year time period at a MARR of 12% per year compounded quarterly?

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
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A Pump manufacturer expects its materials cost to be $1,000,000 this quarter and to increase by $100,000
each quarter for the nest 4 years. What is the present worth of the costs for a 4-year time period at a
MARR of 12% per year compounded quarterly?
Transcribed Image Text:A Pump manufacturer expects its materials cost to be $1,000,000 this quarter and to increase by $100,000 each quarter for the nest 4 years. What is the present worth of the costs for a 4-year time period at a MARR of 12% per year compounded quarterly?
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