The maintenance costs of a piece of equipment are expected to be S1500 at the end of the first year and expected to increase by S125 each year through year seven. Assuming an interest rate of 10%. Match the following questions with the closest correct answers from the given list What is the present worth of base amount? A. $1595 B. $1280 What is the present worth of gradient amount? C. $7302 What is the present worth of maintenance costs? D. $294 , What is the equivalent annual cost? E. S435.24 F. S8898 G. S1827

The maintenance costs of a piece of equipment are expected to be S1500 at the end of the first year and expected to increase by S125 each year through year seven. Assuming an interest rate of 10%. Match the following questions with the closest correct answers from the given list What is the present worth of base amount? A. $1595 B. $1280 What is the present worth of gradient amount? C. $7302 What is the present worth of maintenance costs? D. $294 , What is the equivalent annual cost? E. S435.24 F. S8898 G. S1827

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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