Question 3. The installation costs of a battery system in a home were $5,000 in 2017. Assume that the life of the system is 3 years. The real internal rate of return on this investment is 10% and the average inflation is 3%. Find its equivalent future worth at 2020 (in terms of actual and real dollars).

Question 3. The installation costs of a battery system in a home were $5,000 in 2017. Assume that the life of the system is 3 years. The real internal rate of return on this investment is 10% and the average inflation is 3%. Find its equivalent future worth at 2020 (in terms of actual and real dollars).

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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