Suppose that the maintenance for a piece of equipment costs $3,000 and increases by 8% every year for 6 years. The interest rate is 8% per year. What is the equivalent present cost over the time period? O a. 21,111 Ob. 20,000 O c. 16,667 O d. 18,500 Oe. 16,320

Suppose that the maintenance for a piece of equipment costs $3,000 and increases by 8% every year for 6 years. The interest rate is 8% per year. What is the equivalent present cost over the time period? O a. 21,111 Ob. 20,000 O c. 16,667 O d. 18,500 Oe. 16,320

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose that the maintenance for a piece of equipment costs $3,000 and increases by 8% every year for 6 years. The interest rate is 8% per year. What is
the equivalent present cost over the time period?
O a. 21,111
Ob. 20,000
O c. 16,667
O d. 18,500
Oe. 16,320
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