An engineering technology group just purchased new CAD software for P85,000 now and annual payments of P15,000 per year for six years starting 3 years from now for annual upgrades. What is the equivalent annual cost of the all the payments made if the interest rate is 8% per year?

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
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Chapter1: Making Economics Decisions
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An engineering technology group just purchased
new CAD software for P85,000 now and annual
payments of P15,000 per year for six years starting
3 years from now for annual upgrades. What is the
equivalent annual cost of the all the payments
made if the interest rate is 8% per year?
Transcribed Image Text:An engineering technology group just purchased new CAD software for P85,000 now and annual payments of P15,000 per year for six years starting 3 years from now for annual upgrades. What is the equivalent annual cost of the all the payments made if the interest rate is 8% per year?
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