The maintenance cost of an investment is $2,000 per year for the first 10 years and after that of $1,000 per year. The investment is assumed to have an infinite life. With the cost of money / interest rate at 8%, the present worth of the total annual costs is most nearly? a. $14,000 b. $16,000 c. $19,000 d. $22,000

The maintenance cost of an investment is $2,000 per year for the first 10 years and after that of $1,000 per year. The investment is assumed to have an infinite life. With the cost of money / interest rate at 8%, the present worth of the total annual costs is most nearly? a. $14,000 b. $16,000 c. $19,000 d. $22,000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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