What is the equivalent annual worth of costs

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Reference no: EM131004727

A mechanical engineer who recently graduated with a master’s degree is contemplating starting his own commercial heating and cooling company. He can purchase a Web Page design package aimed at delivering information only for $1,500 per year. If his business is successful, he will purchase a more elaborate e-commerce package costing $5,000 per year. If the engineer purchase the less expensive package now (beginning-of-year payments)and he purchases the e-commerce package 4 years from now (also beginning-of-year payments) what is the equivalent annual worth of costs for the website for a10-year period (years 1 through 10 at an interest rate of 10% per year? Use solution method where you first calculate an equivalent F (not P).

Reference no: EM131004727

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