G.3. A proposed geothermal energy project has an initial cost of $1,000K. In addition it will re- quire an infinite series of periodic maintenance expenditures at five-year intervals following the first maintenance expenditure at EOY 2. Find the equivalent annual cost with n →∞ and i = 88 percent per year. ΕΟΥ Expenditure 0 Initial cost $1,000K 2 Periodic maintenance 140K 7 Same 200K 12 Same 260K 17 Same 320K etc to

G.3. A proposed geothermal energy project has an initial cost of $1,000K. In addition it will re- quire an infinite series of periodic maintenance expenditures at five-year intervals following the first maintenance expenditure at EOY 2. Find the equivalent annual cost with n →∞ and i = 88 percent per year. ΕΟΥ Expenditure 0 Initial cost $1,000K 2 Periodic maintenance 140K 7 Same 200K 12 Same 260K 17 Same 320K etc to

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter5: Business And Economic Forecasting

Section: Chapter Questions

Problem 2E

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