Determine the capatalized cost for a series of cash flow starting at the end of the...
Determine the capatalized cost for a series of cash flow starting at the end of the first year with $400 and increasing at the rate of $100 for the next 5 years. The series cash flow from year 1 to 6 repeat forever. assume a MARR of 6%
1- $6,785
2- $5,000
3- $7,912
4- $10,550
5- none of the above
Homework Answers
Option 4
CC = Annual cost / rate of interest
= (400 + 100(A/G, 6%, 6)) / 6%
= (400 + 100*2.3304)/6%
= 10550
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