Question
15 points Save Tacozza Electric manufactures an innovative system that combines coarse and fine bubble components. This year the cost for pressure key components
15 points Save Tacozza Electric manufactures an innovative system that combines coarse and fine bubble components. This year the cost for pressure key components is $25,000. Based on cle of a new contract with a distributor in China and volume discounts, the company expects this cost to increase. If the cost in year 2 and each year thereafter decreases by $580. What present sum of money would need to be set aside now to pay the costs for the seven year period? Assume 6.5% interest per year. What is the equivalent annual cost? The present sum of money would need to be set aside now to pay the costs for the seven year period Draw cash flow diagram and write the basic set up equations, formulae used and all detailed calculations used to arrive your answer.
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