The annual operating and maintenance (O&M) expenses of a company are $195,000 at EOY 1 decreasing by $8,500 per year until EOY 10. If the annual interest rate is 12.75%, what is the future equivalent of the O&M expenses at EOY 10? O a. $4,095,071

The annual operating and maintenance (O&M) expenses of a company are $195,000 at EOY 1 decreasing by $8,500 per year until EOY 10. If the annual interest rate is 12.75%, what is the future equivalent of the O&M expenses at EOY 10? O a. $4,095,071

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 18E

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Question

The annual operating and maintenance (O&M) expenses of a company are $195,000
at EOY I decreasing by $8,500 per year until EOY 10. If the annual interest rate is 12.75%,
what is the future equivalent of the O&M expenses at EOY 10?
O a. $4,095,071
O b. $3,965,421
O c. $3,002,041
O d. $904,172
O e. $3,131,691

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