Basics Of Engineering Economy
Basics Of Engineering Economy
2nd Edition
ISBN: 9780073376356
Author: Leland Blank, Anthony Tarquin
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 5, Problem 22P
To determine

Calculate the annual cost.

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What is the equivalent annual cost in years 1 through 7 of a contract that has a first cost of $65,000 in year 0 and annual costs of $18,000 in years 3 through 7? Use an interest rate of 14% per year. The equivalent annual cost is determined to be $|
The State of Chiapas, Mexico, decided to fund a program for literacy. The first cost of $300,000 now and an updated budget of $145,000 every 7 years forever is requested. Determine the perpetual equivalent annual cost at an interest rate of 10% per year.   The perpetual equivalent annual cost is $− .
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