Compute the present worth and equivalent annual worth

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Reference no: EM13909119

Initial Cost occurs in year 0

Annual Maintenance Cost starts in year 3 and increases $100 per year Annual Income starts in the year noted and increases at the rate G1 for 5 years, then becomes stable for 3 years and then declines at the rate G2 for 4 years.

Compute the present worth and equivalent annual worth.

Initial Cost: -15348

Ann. Main. Cost: -1509

Ann. Income : 4056

Income begins at year 5

G1 = 5

G2 = -4

Interest rate = 10%

Reference no: EM13909119

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