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5. The Taif County Transportation Authority (TCTA) has just installed new software to charge and track toll fees. The director wants to know the total

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5. The Taif County Transportation Authority (TCTA) has just installed new software to charge and track toll fees. The director wants to know the total equivalent cost of all future costs incurred to purchase the software system. If the new system will be used for the indefinite future, find the equivalent cost: (The Cash Flow is given below) (10 Marks) a. now, a CC value, and (16 Marks) b. for each year hereafter, an AW value. (4 Marks) The system has an installed cost of $150,000 and an additional cost of $50,000 after 10 years. The annual software maintenance contract cost is $5,000 for the first 4 years and $8000 thereafter. In addition, there is expected to be a recurring major upgrade cost of $15,000 every 13 years. Assume that i= 12% per year for county funds. i= 12% per year 20 25 26 10 0 12 14 Year $ 5,000 $ 5,000 $ 8.000 $ 8,000 $ 8,000 $ 15,000 $ 15,000 $ 50,000 $ 150,000 5. The Taif County Transportation Authority (TCTA) has just installed new software to charge and track toll fees. The director wants to know the total equivalent cost of all future costs incurred to purchase the software system. If the new system will be used for the indefinite future, find the equivalent cost: (The Cash Flow is given below) (10 Marks) a. now, a CC value, and (16 Marks) b. for each year hereafter, an AW value. (4 Marks) The system has an installed cost of $150,000 and an additional cost of $50,000 after 10 years. The annual software maintenance contract cost is $5,000 for the first 4 years and $8000 thereafter. In addition, there is expected to be a recurring major upgrade cost of $15,000 every 13 years. Assume that i= 12% per year for county funds. i= 12% per year 20 25 26 10 0 12 14 Year $ 5,000 $ 5,000 $ 8.000 $ 8,000 $ 8,000 $ 15,000 $ 15,000 $ 50,000 $ 150,000

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