x1= $2000 x2% = 7%

Question 4: Major overhaul expenses of $x, each are anticipated for a large piece of equipment. The expenses will occur at EOY four and will continue every three years thereafter up to and including year 13. If the interest rate is x% per year, What is the present equivalent of the overhaul expenses at time 0? What is an annual equivalent expense during only years 5-13