Your coworker was impressed with the efficiency you showed in the previous problem and would like to apply your methods to a pro
1 answer:
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Answer:
present cost = $302218.15
Explanation:
given data
cost of the work 1st year A1 = $100,000
cost of the work 2nd year A2 = $85,000
cost of the work 3rd year A3 = $70,000
cost of the work 4th year A4 = $55,000
cost of the work 5th year A4 = $40,000
interest rate r = 6% = 0.06
to find out
present worth cost is for the first 5 years
solution
present worth cost will be here as per given equation
present cost = .........................1
here r is rate of interest and A is amount given
put here value we get
present cost =
present cost = $302218.15