A security systems company have been hired to install a system for a city's bank. The city council agreed to pay the total cost of installment plus operation and maintenance cost for the next 10 years. At the end of the 10 years, the current security system can be updated with the new version, and if the bank decides to renew the security system with the new version, they will receive a rebate (discount) of $20,000. The installation cost of the systems is $40000. The operation cost is initially $1000 and increases by $300 each year, and the maintenance cost is $1600 annually. Assuming the interest rate is 8%, what is the present value of the total costs for city council pay to the security company for the first cost and yearly operation and maintenance cost of the first 10 years?
A security systems company have been hired to install a system for a city's bank. The city council agreed to pay the total cost of installment plus operation and maintenance cost for the next 10 years. At the end of the 10 years, the current security system can be updated with the new version, and if the bank decides to renew the security system with the new version, they will receive a rebate (discount) of $20,000. The installation cost of the systems is $40000. The operation cost is initially $1000 and increases by $300 each year, and the maintenance cost is $1600 annually. Assuming the interest rate is 8%, what is the
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