ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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A town has just replaced a water storage tank and associated feeders from it throughout the community. It is estimated that the
annual service requirements will be $44,000 the first year, with $11,000 increases in each subsequent year for 8 years. The
community's time value of money is 4%. Which Excel® entry should you use to determine the future worth of these maintenance
expenses at the end of year 8.
O =NPV (4%,8,,540227)
O=FV (4%,8,,-44000)
O=FV(4%,8,,-540227)
O=FV (8,4,,-11000)
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Transcribed Image Text:A town has just replaced a water storage tank and associated feeders from it throughout the community. It is estimated that the annual service requirements will be $44,000 the first year, with $11,000 increases in each subsequent year for 8 years. The community's time value of money is 4%. Which Excel® entry should you use to determine the future worth of these maintenance expenses at the end of year 8. O =NPV (4%,8,,540227) O=FV (4%,8,,-44000) O=FV(4%,8,,-540227) O=FV (8,4,,-11000)
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