Question
E252 - Company A is considering a long-term contract to outsource maintenance and operations that will improve the efficiency of the company. The payment schedule
E252 - Company A is considering a long-term contract to outsource maintenance and operations that will improve the efficiency of the company. The payment schedule has two large payments and continuing payments thereafter. The proposed payment schedule is $300,000 now, $200,000 four years from now, $6,000 every 4 years and an annual amount of $6,000 beginning 10 years from now and continuing indefinitely. What is the capitalized cost of this project with interest rate 12% per year compounded quarterly?
The CORRECT answer is $451,049.97. Can you please explain how to get the answer with excel.
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