Cost of work for the Year 1 (Say A1) = 68,000
It gets reduced by $ 7000 each year,
Cost of work for Year 2 (A2) = 68000 – 7000 = 61,000
A3 = 54,000
A4 = 47,000
A5 = 40,000
There are 5 years as given
Interest rate to be applied = 6%
Hence, equivalent present cost would be $ 230,905
4-56 The council members of a small town have decided A that the earth levee that...
4-56 The council members of a small town have decided A that the earth levee that protects the town from flooding should be rebuilt and strengthened. The town engineer estimates that the cost of the work at the end of the first year will be $68,000. He esti- mates that in subsequent years the annual repair costs will decline by $7000, making the second-year cost $61,000: the third-year $54,000, and so forth. The council members want to know what the...
Town of Eden Bay The town of Eden Bay owns and maintains a fleet of vehicles. You are a systems analyst reporting to Dawn, the town’s IT manager. Background Eden Bay is a medium-sized municipality. The town has grown rapidly, and so has the demand for town services. Eden Bay currently owns 90 vehicles, which the town’s equipment department maintains. The fleet includes police cars, sanitation trucks, fire trucks, and other vehicles assigned to town employees. The maintenance budget has...