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Consider the cash flow diagram shown below. Using an interest rate of 6% for discounting purposes determine the present worth, the equivalent annual worth, and
Consider the cash flow diagram shown below. Using an interest rate of 6% for discounting purposes determine the present worth, the equivalent annual worth, and the future worth at the end of the last year of the cash flow diagram (period = year). A 5 metre blade width grader with 300 HP costs $2 million and has an operating life of 35,000 hours. Total operating cost for using this grader is $100 per hour. The grader will operate 5,000 hours per year. The interest rate is assumed at 10%. What is the total cost of using this grader today
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