e $80, what is the present worth of the costs for a 5-year time period at an int

EBK HEALTH ECONOMICS AND POLICY
7th Edition
ISBN:9781337668279
Author:Henderson
Publisher:Henderson
Chapter4: Economic Evaluation In Health Care
Section: Chapter Questions
Problem 7QAP
Question
Metalfab Pump and Filter Inc. estimates that the cost of steel bodies for pressure valves will increase by $2 every 3 months. If the cost
for the first quarter is expected to be $80, what is the present worth of the costs for a 5-year time period at an interest rate of 1.86%
per quarter?
The present worth is $
Transcribed Image Text:Metalfab Pump and Filter Inc. estimates that the cost of steel bodies for pressure valves will increase by $2 every 3 months. If the cost for the first quarter is expected to be $80, what is the present worth of the costs for a 5-year time period at an interest rate of 1.86% per quarter? The present worth is $
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