What is equal annual amount that has the same present worth

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Reference no: EM131012082

Maintenance on a test track simulator used to ‘‘exercise’’ vehicles 24/7 for engineering reliability analyses is expected to require $14,000 the first year increasing by 10% each year thereafter during its 5-year life. Interest is 15%.

a) Determine the present worth of this series of expenditures.

b) What is the equal annual amount that has the same present worth?

Reference no: EM131012082

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