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After the assassination of President John F. Kennedy, an eternal flame was placed on his grave. It is a torch that should remain lit forever.
After the assassination of President John F. Kennedy, an "eternal flame" was placed on his grave. It is a torch that should remain lit forever. Assume that the annual fuel and maintenance costs of the flame are $185, and that the cost of capital for the Foundation that maintains the flame is estimated to be 8%. What was the estimated present value of the cost of the eternal flame at the time that it was placed on President Kennedy's grave if the initial $185 outlay was made at the end of the first year?
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