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MrRa [10]
2 years ago
10

The State of Chiapas, Mexico, decided to fund a program for literacy. The first cost of $250,000 now and an updated budget of $9

5,000 every 7 years forever is requested. Determine the perpetual equivalent annual cost at an interest rate of 10% per year. The perpetual equivalent annual cost is $
Business
1 answer:
timama [110]2 years ago
8 0

The perpetual equivalent annual cost is - $35013

<h3 /><h3>The perpetual annual cost calculation</h3>

interest i = 10%

Period = n = 7 years

Formula

A/F = i/(1+i)^n-1

= 0.1/(1+0.1)^7-1

= 0.1054

The perpetual annual cost

= -250000*0.1-95000(0.1054)

= -25000-10013

= - 35013

Therefore the perpetual equivalent annual cost is   $35013

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In the given scenario James is restructuring operations around three product lines to increase speed and effectiveness of decision making.

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3 years ago
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Answer:

The answer is A True

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77julia77 [94]

Answer:

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