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 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.
Chapter2: Loads On Structures
Section: Chapter Questions
Problem 1P
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Question
![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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffaeafa41-c80c-420d-89be-d4e8f616fe56%2Ff6078e17-5350-4984-8ce5-7359bdbf30a9%2Foiitp0b_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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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