Question

Find the present worth at time 0 of the chrome plating costs shown in the cash flow diagram. Assume 7% per year. 1 2 3 4 5 year 1000 V1200 1400 1600 1800 2000 The present worth of the chrome plating is determined to be $

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Answer #1

Present Worth = 2000 + 1800/(1+7%) + 1600/(1+7%)2 + 1400/(1+7%)3 + 1200/(1+7%)4 + 1000/(1+7%)5 = 7851.02

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