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To find the 8-year equivalent uniform series, we need to find the present value of the re-calibration costs over 8 years at a discount rate of 16% per year. The present value of an annuity is calculated using the formula: PV = C* (1-(1+r)^-n)/r

To find the 8-year equivalent uniform series, we need to find the present value of the re-calibration costs over 8 years at a discount rate of 16% per year. The present value of an annuity is calculated using the formula: PV = C* (1-(1+r)^-n)/r

Advanced Engineering Mathematics
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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To find the 8-year equivalent uniform series, we need to find the present value of the re-calibration costs over 8 years at a discount rate of 16% per year. The present value of an annuity is calculated using the formula: PV = C * (1 - (1 + r)^-n)/r Where PV is the present value, C is the annual payment (in this case, $8,000), r is the discount rate (in this case, 16%), and n is the number of years (in this case, 8). Plugging these values into the formula, we get: PV = $8,000 * (1 - (1 + 0.16)^-8)/0.16 = $5043.60 Therefore, the answer is C) $5043.60.
Transcribed Image Text:To find the 8-year equivalent uniform series, we need to find the present value of the re-calibration costs over 8 years at a discount rate of 16% per year. The present value of an annuity is calculated using the formula: PV = C * (1 - (1 + r)^-n)/r Where PV is the present value, C is the annual payment (in this case, $8,000), r is the discount rate (in this case, 16%), and n is the number of years (in this case, 8). Plugging these values into the formula, we get: PV = $8,000 * (1 - (1 + 0.16)^-8)/0.16 = $5043.60 Therefore, the answer is C) $5043.60.
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