A software package created by Navarro & Associates can be used for analyzing and designing three-sided guyed towers and three- and four-sided self-supporting towers. A single-user license will cost $4000 per year. A site license has a one-time cost of $15,000. A structural engineering consulting company is trying to decide between two alternatives: first, to buy one single-user license now and one each year for the next 4 years (which will provide 5 years of service), or second, to buy a site license now. Determine which strategy should be adopted at an interest rate of 12% per year for a 5-year planning period using present worth evaluation.
A software package created by Navarro & Associates can be used for analyzing and designing three-sided guyed towers and three- and four-sided self-supporting towers. A single-user license will cost $4000 per year. A site license has a one-time cost of $15,000. A structural engineering consulting company is trying to decide between two alternatives: first, to buy one single-user license now and one each year for the next 4 years (which will provide 5 years of service), or second, to buy a site license now. Determine which strategy should be adopted at an interest rate of 12% per year for a 5-year planning period using present worth evaluation.
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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A software package created by Navarro & Associates
can be used for analyzing and designing three-sided
guyed towers and three- and four-sided self-supporting
towers. A single-user license will cost $4000 per
year. A site license has a one-time cost of $15,000.
A structural engineering consulting company is trying
to decide between two alternatives: first, to buy
one single-user license now and one each year for the next 4 years (which will provide 5 years of service),
or second, to buy a site license now. Determine which
strategy should be adopted at an interest rate of 12%
per year for a 5-year planning period using present
worth evaluation.
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