A construction management company is examining its cash flow requirements for the next 7 years. The company expects to replace software and infield computing equipment at various times over a 7-year planning period. Specifically, the company expects to spend $6000 one year from now, $9000 three years from now, and $10,000 each year in years 6 through 10. What is the future worth in year 10 of the planned expenditures, at an interest rate of 12% per year?

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Q: A construction management company is examining its cash flow requirements for the next few years.…

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Q: A construction management company is examining its cash flow requirements for the next few years.…

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A: The NPV can be calculated as the Present Value of cash Inflows-Initial Cost

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Q: payback period for this project?

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A: Computation:

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