Required information Aquatech Microsystems spent $185,000 for a communications protocol to achieve interoperability among its utility ystems. The company uses a real interest rate of 15% per year on such investments and a recovery period of 5 years. mine the annual worth of the expenditure in future dollars at an inflation rate of 6.5% per year. nual worth of the expenditure is $1

Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter2: The One Lesson Of Business
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Aquatech Microsystems spent $185,000 for a communications protocol to achieve interoperability among its utility
systems. The company uses a real interest rate of 15% per year on such investments and a recovery period of 5 years.
Determine the annual worth of the expenditure in future dollars at an inflation rate of 6.5% per year.
The annual worth of the expenditure is $
Transcribed Image Text:! Required information Aquatech Microsystems spent $185,000 for a communications protocol to achieve interoperability among its utility systems. The company uses a real interest rate of 15% per year on such investments and a recovery period of 5 years. Determine the annual worth of the expenditure in future dollars at an inflation rate of 6.5% per year. The annual worth of the expenditure is $
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