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Show all work. The answer must include PAINFG and the cash flow diagrams. P= Present value (this value is not used in this problem) A
Show all work.
The answer must include PAINFG and the cash flow diagrams.
P= Present value (this value is not used in this problem) A = Annuity; this is the value that is given in this problem i = Effective interest rate n = Number of payments F = Future value; this is the value that we want to find in this problem (F= ?) G = Gradient value (this value is not used in this problem)
- Giovanna is buying an Excavator for her new construction firm. The cost to buy the equipment is $250,000. Annual O&M costs are $15,000/yr. They increase $2500 per year starting in year 5. She keeps the equipment for 10 years, then sells it to Shawqi for $50,000. What is the life cycle cost (present worth) of the excavator if the interest rate is 5%.
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