17.) A crusher for use in a mining operation is expected to have a maintenance cost of $10,000 in the first year. The maintenance costs are expected to increase $1,000 per year. The interest rate is 8% per year, compounded annually. Over a five year period, what will be the approximate effective annual maintenance costs? a. $12,500 b. $13,625 c. $11,850 d. $10,890

17.) A crusher for use in a mining operation is expected to have a maintenance cost of $10,000 in the first year. The maintenance costs are expected to increase $1,000 per year. The interest rate is 8% per year, compounded annually. Over a five year period, what will be the approximate effective annual maintenance costs? a. $12,500 b. $13,625 c. $11,850 d. $10,890

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 27P

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