A company is considering purchasing a storage facility for $35,000. in addition, they will sign a S-year maintenance contract for 58.000 per year. When the contract ends after five years, the cost of maintenance is expected to increase by 12% per year for the next 8 years. Select the correct standard notation for determining the present worth for the entire period of 13 years, using an interest rate of 15% per year, O Pwe -35,000 - 8,000 (PIA, 15%, 5) - 8.000 (PIA, 12%, 15%, 7) (P/F. 15%, 5) O Pw -35,000 - 8,000 (PIA, 15%, 4) -8,000 (PIA, 12%, 15%, 8) (PIF, 15%, 4) O Pwe-35.000 - 8,000 (PIA, 15%, 4) - 8,000 (PIA, 12%, 15%, 0) (PIF, 15%, 4) O Pwe -35,000 - 8,000 (PIA, 15%, 4) -8,000 (PIA, 15%, 12%, 9) (P/F, 12%, 4) O None of Them

A company is considering purchasing a storage facility for $35,000. in addition, they will sign a S-year maintenance contract for 58.000 per year. When the contract ends after five years, the cost of maintenance is expected to increase by 12% per year for the next 8 years. Select the correct standard notation for determining the present worth for the entire period of 13 years, using an interest rate of 15% per year, O Pwe -35,000 - 8,000 (PIA, 15%, 5) - 8.000 (PIA, 12%, 15%, 7) (P/F. 15%, 5) O Pw -35,000 - 8,000 (PIA, 15%, 4) -8,000 (PIA, 12%, 15%, 8) (PIF, 15%, 4) O Pwe-35.000 - 8,000 (PIA, 15%, 4) - 8,000 (PIA, 12%, 15%, 0) (PIF, 15%, 4) O Pwe -35,000 - 8,000 (PIA, 15%, 4) -8,000 (PIA, 15%, 12%, 9) (P/F, 12%, 4) O None of Them

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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