The initial construction cost of a project is $200000 which should be paid at the beginning of the construction period (time =0). Extra expenditures planning to be paid during operation period, which are ($5000) at the end of the first year, $3000 at the end of the second year, $1000 at the end of the third year, $1000 at the end of the fifth year and $ 1000 at the end of the sixth year. If the project life is 10 years and the interest rate is %10, draw the cash flow diagram and find a) the present worth of the project, b) the future worth at the end of the project life, c) the annual payment worth. The initial constructioncost of a project is $200000 which should be paidat the beginning of theconstruction period (time =0). Extra expendituresplanning to be paid duringoperation period, which are ($5000) at the end ofthe first year, $3000 at theend of the second year, $1000 at the end of thethird year, $1000 at the end ofthe fifth year and $ 1000 at the end of the sixthyear. If the project life is10 years and the interest rate is %10, draw thecash flow diagram and find a)the present worth of the project, b) the futureworth at the end of the projectlife, c) the annual payment worth.

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Answered: The initial construction cost of a…

Structural Analysis

6th Edition

ISBN:9781337630931

Author:KASSIMALI, Aslam.

Publisher:KASSIMALI, Aslam.

Chapter2: Loads On Structures

Section: Chapter Questions

Problem 1P

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The initial construction cost of a project is $200000 which should be paid at the beginning of the construction period (time =0). Extra expenditures planning to be paid during operation period, which are ($5000) at the end of the first year, $3000 at the end of the second year, $1000 at the end of the third year, $1000 at the end of the fifth year and $ 1000 at the end of the sixth year. If the project life is 10 years and the interest rate is %10, draw the cash flow diagram and find a) the present worth of the project, b) the future worth at the end of the project life, c) the annual payment worth.

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