Cisco, Inc., has a proposal from the Engineering Planning Division to invest Cisco retained earnings in the design, testing, and development of the next generation of smart grids useful in the Internet of Things (loT) environment. The initial investment projection is $5,700,000 in year 0, $1,900,000 in year 7, and $137,480 in years 11 and beyond. At i= 14% per year, calculate the infinite-life equivalent annual cost in years 0 through infinity of the proposal. The infinite-life equivalent annual cost is determined to be $ 842765.1092 0
Cisco, Inc., has a proposal from the Engineering Planning Division to invest Cisco retained earnings in the design, testing, and development of the next generation of smart grids useful in the Internet of Things (loT) environment. The initial investment projection is $5,700,000 in year 0, $1,900,000 in year 7, and $137,480 in years 11 and beyond. At i= 14% per year, calculate the infinite-life equivalent annual cost in years 0 through infinity of the proposal. The infinite-life equivalent annual cost is determined to be $ 842765.1092 0
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter9: Decision Making Under Uncertainty
Section: Chapter Questions
Problem 30P
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