Sun Oil Company is considering the installation of new flow meters in one of its pipelines. If the company goes ahead with the project, it will spend $50,000 each year for four years starting 2 years from now. What is the present of the investment at an interest rate of 10% per year? Show the cash flow diagram.

Sun Oil Company is considering the installation of new flow meters in one of its pipelines. If the company goes ahead with the project, it will spend $50,000 each year for four years starting 2 years from now. What is the present of the investment at an interest rate of 10% per year? Show the cash flow diagram.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Instructions
Sun Oil Company is considering the installation of new flow meters in one of its
pipelines. If the company goes ahead with the project, it will spend $50,000 each year
for four years starting 2 years from now. What is the present of the investment at an
interest rate of 10% per year? Show the cash flow diagram.

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