Maintenance costs for machine increase by $2,000/year over the 5-year. The initial maintenance cost is $5,000. With interest rate of 8 % annually, find the present worth for the maintenance costs. o a. $34712 b. $34720 OC. $34717 o d. $34708 $34710
Maintenance costs for machine increase by $2,000/year over the 5-year. The initial maintenance cost is $5,000. With interest rate of 8 % annually, find the present worth for the maintenance costs. o a. $34712 b. $34720 OC. $34717 o d. $34708 $34710
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Maintenance costs
for machine increase by
$2,000/year over the 5-year. The initial maintenance
cost is $5,000. With interest rate of 8 % annually, find
the present worth for the maintenance costs.
a. $34712
b. $34720
$34717
d.
$34708
O e.
$34710](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F32b05224-a24a-46ca-bb49-95c97f2a5fe1%2F391ca674-cc41-41b5-b935-835ed386f9af%2Fiewgh3a_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Maintenance costs
for machine increase by
$2,000/year over the 5-year. The initial maintenance
cost is $5,000. With interest rate of 8 % annually, find
the present worth for the maintenance costs.
a. $34712
b. $34720
$34717
d.
$34708
O e.
$34710
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