A geotechnical engineering firm has been awarded a job to design the foundation of an office building. The project is postponed and will not start for four more years. The firm needs to estimate the present worth of the costs of the project. At the year four, the cost will be $175,000 decreasing by $50,000 per year for the next three years. If the interest rate is 4%, what is the present worth of the projected cost of the project?

A geotechnical engineering firm has been awarded a job to design the foundation of an office building. The project is postponed and will not start for four more years. The firm needs to estimate the present worth of the costs of the project. At the year four, the cost will be $175,000 decreasing by $50,000 per year for the next three years. If the interest rate is 4%, what is the present worth of the projected cost of the project?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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