Maintenance costs for machine increase by $2,000/year over the 5-year. The initial maintenance cost is $5,000. With interest rate of 8 % annually, find the present worth for the maintenance costs. o a. $34712 b. $34720 OC. $34717 o d. $34708 $34710

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 15EA: Project A costs $5,000 and will generate annual after-tax net cash inflows of $1,800 for five years....
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Maintenance costs
for machine increase by
$2,000/year over the 5-year. The initial maintenance
cost is $5,000. With interest rate of 8 % annually, find
the present worth for the maintenance costs.
a. $34712
b. $34720
$34717
d.
$34708
O e.
$34710
Transcribed Image Text:Maintenance costs for machine increase by $2,000/year over the 5-year. The initial maintenance cost is $5,000. With interest rate of 8 % annually, find the present worth for the maintenance costs. a. $34712 b. $34720 $34717 d. $34708 O e. $34710
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