The property appraisal district for Marin County has just installed new software to track residential market values for property tax computations. The manager wants to know the total equivalent cost of all future costs incurred when the three county judges agreed to purchase the software system. If the new system will be used for the indefinite future, find the equivalent value (a) now and (b) for each year hereafter. The system has an installed cost of $173.282 and an additional cost of $73.282 at year 17. The annual software maintenance contract cost is $3,282 for the first 7 years, $4,923 for the second 7 years, $9,846 for the third 7 years, and $17,776 thereafter. In addition, there is expected to be a recurring major upgrade cost of $17,328 every 20 years. Assume that i= 7% per year for county funds.
The property appraisal district for Marin County has just installed new software to track residential market values for property tax computations. The manager wants to know the total equivalent cost of all future costs incurred when the three county judges agreed to purchase the software system. If the new system will be used for the indefinite future, find the equivalent value (a) now and (b) for each year hereafter. The system has an installed cost of $173.282 and an additional cost of $73.282 at year 17. The annual software maintenance contract cost is $3,282 for the first 7 years, $4,923 for the second 7 years, $9,846 for the third 7 years, and $17,776 thereafter. In addition, there is expected to be a recurring major upgrade cost of $17,328 every 20 years. Assume that i= 7% per year for county funds.
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