The estimated cost of the project is $35,000 now and $7,000 per year for 5 years beginning 1year from now. The per year cost increases by 12% per year thereafter for the next 8 years.Considering an Inflation rate of 11% per year and the real Interest rate of 15% per year, the PW ofthe project is:-$86,712-$67,564-$62,436-$83,232

The objective of the question is to calculate the present worth of the project considering the given…

Answered: The estimated cost of the project is…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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