Determine the prsent worth of the project

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A construction project consists of 10 identical units. The cost of the first unit is $30000 a learning curve of 90% apllies to the cost and the duration of the consecutive units. Assume the first unit takes 8 months( 20 days a month) to finish and that the project is financed by a loan taken at the beginning of the project at an annual rate of 10%. If the proportional amount of the loan is recieved at the beginning of each year, determine the prsent worth of the project assuming the units are produced sequentially.

Reference no: EM13253783

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