A coal-fired power plant has upgraded an emission control valve. The modification costs only $10,000 and is expected to last 6 years. The maintenance cost is expected to be high at S1000 the first year, increasing by 11% per year thereafter. Determine the equivalent present worth of the modification and maintenance cost by hand at 11% per year. OTotal $ 1K $ 1K(1.11) $ 1K(1.11)? $ 1K(1.11)3 $ 10K $ 1K(1.11)4 $ 1K(1.11)5 Answer: PoTotal = $ Blank 1

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Chapter11: Long-term Assets
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A coal-fired power plant has upgraded an emission control valve. The modification costs only $10,000 and is
expected to last 6 years. The maintenance cost is expected to be high at $1000 the first year, increasing by 11%
per year thereafter. Determine the equivalent present worth of the modification and maintenance cost by hand
at 11% per year.
OTotal
$ 1K
$ 1K(1.11)
$ 1K(1.11)2
$ 1K(1.11)3
$ 10K
$ 1K(1.11)4
$ 1K(1.11)5
Answer:
POTotal = $ Blank 1
Transcribed Image Text:A coal-fired power plant has upgraded an emission control valve. The modification costs only $10,000 and is expected to last 6 years. The maintenance cost is expected to be high at $1000 the first year, increasing by 11% per year thereafter. Determine the equivalent present worth of the modification and maintenance cost by hand at 11% per year. OTotal $ 1K $ 1K(1.11) $ 1K(1.11)2 $ 1K(1.11)3 $ 10K $ 1K(1.11)4 $ 1K(1.11)5 Answer: POTotal = $ Blank 1
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