The cost of maintaining a public monument in Washington, D.C. occurs as periodic outlays of $10,000 every 5 years. If the first outlay is 5 years from now, the capitalized cost of the maintenance at an interest rate of 10% per year is closest to:

The cost of maintaining a public monument in Washington, D.C. occurs as periodic outlays of $10,000 every 5 years. If the first outlay is 5 years from now, the capitalized cost of the maintenance at an interest rate of 10% per year is closest to:

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The cost of maintaining a public monument in Washington, D.C. occurs as periodic
outlays of $10,000 every 5 years. If the first outlay is 5 years from now, the
capitalized cost of the maintenance at an interest rate of 10% per year is closest to:
($1638)
($16,380)
($26,380)
($29,360)

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