The cost to manufacture a component used in intelligent interface was $22,000 the first year. The company expects the cost to increase by 10% each year. Calculate the present worth of this cost over five-year period at an interest rate of 5% per year $72,542 O $115,226 O $152,129 $89,219 O $134,312

The cost to manufacture a component used in intelligent interface was $22,000 the first year. The company expects the cost to increase by 10% each year. Calculate the present worth of this cost over five-year period at an interest rate of 5% per year $72,542 O $115,226 O $152,129 $89,219 O $134,312

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter10: Capital Budgeting: Decision Criteria And Real Option

Section: Chapter Questions

Problem 3P

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Solve this finance but not use of excel

The cost to manufacture a component used in intelligent interface was $22,000 the
first year. The company expects the cost to increase by 10% each year. Calculate the
present worth of this cost over five-year period at an interest rate of 5% per year
$72,542
O $115,226
$152,129
$89,219
$134,312

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