Calculate the perpetual equivalent annual cost (years 1 to ∞) of $725,000 now and $950,000, 8 years from now at an interest rate of 9% per year. The perpetual equivalent annual cost is determined to be $

Calculate the perpetual equivalent annual cost (years 1 to ∞) of $725,000 now and $950,000, 8 years from now at an interest rate of 9% per year. The perpetual equivalent annual cost is determined to be $

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Calculate the perpetual equivalent annual cost (years 1 to %) of $725,000 now and $950,000, 8 years from now at an interest rate of
9% per year.
The perpetual equivalent annual cost is determined to be $

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