49. Maintenance costs for a new facility are expected to be $1i12,000 for the first year ofoperation. It is anticipated that these costs will increase at a rate of 8 percent per year.Assuming a rate of return of 10 percent, what is the present value of the stream ofmaintenance costs over the next 30 years?

The first installment of cost = $112,000Growth of payment (yearly) = 8%Interest rate = 10%

Answered: 49. Maintenance costs for a new…

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

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