Maintenance costs for machine increase by $2,000/year over the 5-year. The initial maintenance cost is $5,000. With interest rate of 8 % annually, find the present worth for the maintenance costs. o a. $34712 b. $34720 OC. $34717 o d. $34708 $34710

Maintenance costs for machine increase by $2,000/year over the 5-year. The initial maintenance cost is $5,000. With interest rate of 8 % annually, find the present worth for the maintenance costs. o a. $34712 b. $34720 OC. $34717 o d. $34708 $34710

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Maintenance costs
for machine increase by
$2,000/year over the 5-year. The initial maintenance
cost is $5,000. With interest rate of 8 % annually, find
the present worth for the maintenance costs.
a. $34712
b. $34720
$34717
d.
$34708
O e.
$34710

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