Bob, a philanthropist, is not sure what rate of return his gifts may realize once donated to

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Bob, a philanthropist, is not sure what rate of return his gifts may realize once donated to his favorite charity. Determine the capitalized cost of $10,000 every 5 years forever, starting 5 years from now at an interest rate of

(a) 3%

(b) 8% per year.

(c) Explain the significant difference between the two capitalized costs.


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Engineering economy

ISBN: 978-0073376301

7th Edition

Authors: Leland Blank, Anthony Tarquin

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