Consider an asset that you purchase for $65,000. Its nominal resale value after five years of ownership is $10,000. At that time you plan to sell it and move to a small tropical- (₁= 4.212.island. What is the levelized cost of holding the asset for the five year period if the annuity factor for five years at 6% is(1+i)"1-(1.06)5.06

Annual level cost is that is uniform over the given period and that is likely to occur over the…

Answered: land. What is the levelized cost of…

land. What is the levelized cost of holding the asset for the five year period if the annuity factor for five years at 6% is 1-

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter1: Understanding Personal Finance

Section1.4: Perform Time Value Of Money Calculations

Problem 3CC

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Question

Consider an asset that you purchase for $65,000. Its nominal resale value after five years of ownership is $10,000. At that time you plan to sell it and move to a small tropical
- (₁
= 4.212.
island. What is the levelized cost of holding the asset for the five year period if the annuity factor for five years at 6% is
(1+i)"
1-
(1.06)5
.06

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