Future equivalent cost of investment of planning horizon

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Reference no: EM13796389

Consider a palletizer and a bottling plant that has a first cost of $150,000. It has operating and maintenance costs of $17,500 per year, and an estimated net salvage value of $25,000 at the end of 30 years. Assume an interest rate of 8% per year. What is the future equivalent cost of the investment of the planning horizon is 30 years?

A. $3,467,000

B. $3,623,000

C. $3,980,000

D. $3,371,000

Reference no: EM13796389

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