EconomicS The design company CasaOffshore in Casablanca Offshoring Park is evaluating the purchase of automatic tools to automate the design process. The company just purchased an upgraded DgCAD software for $5000 now and annual payments of $500 per year for 5 years starting year 1 for annual upgrades with $50 increase each year. Using a rate of 12% per year and a predicted life of 5 years, find the equivalent TOTAL present worth of the maintenance cost only (annual upgrade+ increase).
EconomicS The design company CasaOffshore in Casablanca Offshoring Park is evaluating the purchase of automatic tools to automate the design process. The company just purchased an upgraded DgCAD software for $5000 now and annual payments of $500 per year for 5 years starting year 1 for annual upgrades with $50 increase each year. Using a rate of 12% per year and a predicted life of 5 years, find the equivalent TOTAL present worth of the maintenance cost only (annual upgrade+ increase).
Chapter1: Making Economics Decisions
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![Economics
The design company CasaOffshore in
Casablanca Offshoring Park is evaluating the
purchase of automatic tools to automate the
design process. The company just purchased an
upgraded DgCAD software for $5000 now and
annual payments of $500 per year for 5 years
starting year 1 for annual upgrades with $50
increase each year. Using a rate of 12% per year
and a predicted life of 5 years, find the
equivalent TOTAL present worth of the
maintenance cost only (annual upgrade+
increase).
Hello guys i really need this answer using factors
and formulas please, (calculations only)
thank youuuuuu](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F028f078a-c160-4db5-a53a-52c17188e838%2F6face32e-09bb-420d-b90d-9296f22ab69b%2F4jo0cuw_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Economics
The design company CasaOffshore in
Casablanca Offshoring Park is evaluating the
purchase of automatic tools to automate the
design process. The company just purchased an
upgraded DgCAD software for $5000 now and
annual payments of $500 per year for 5 years
starting year 1 for annual upgrades with $50
increase each year. Using a rate of 12% per year
and a predicted life of 5 years, find the
equivalent TOTAL present worth of the
maintenance cost only (annual upgrade+
increase).
Hello guys i really need this answer using factors
and formulas please, (calculations only)
thank youuuuuu
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