stion A company expects the cost of its product parts to increase by 10% per year beginning 4 years from now through to year 10. The cost in years 1-3s AED 600 and the interest rate is 12% per year. Calculate the total present worth in year-0. Calculate the future worth in year-10.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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ubstion 7
A company expects the cost of its product parts to increase by 10% per year beginning 4 years from now through to year 10.
The cost in years 1-3 is AED 600 and the interest rate is 12% per year.
AED 4,800.66
A.
R AED 12,1361.88
Calculate the total present worth in year-0.
C.
AED 4,224.54
Calculate the future worth in year-10.
AED 6,878.06
D.
AED 13,120.66
E.
AED 3,786.61
F.
A Moving to the next question prevents changes to this answer.
Transcribed Image Text:A Moving to the next question prevents changes to this answer. ubstion 7 A company expects the cost of its product parts to increase by 10% per year beginning 4 years from now through to year 10. The cost in years 1-3 is AED 600 and the interest rate is 12% per year. AED 4,800.66 A. R AED 12,1361.88 Calculate the total present worth in year-0. C. AED 4,224.54 Calculate the future worth in year-10. AED 6,878.06 D. AED 13,120.66 E. AED 3,786.61 F. A Moving to the next question prevents changes to this answer.
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