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Business, 17.04.2020 18:51 Tcutety

The council members of a small town have decided that the earth levee that protects the town from flooding should be rebuilt and strengthened. The town engineer estimates that the cost of the work at the end of the first year will be $85,000. He estimates that in subsequent years the annual repair cost will decline by $10,000 each year, making the second year cost $75,000; the third year $65,000 and so forth. The council members want to know what the equivalent present cost is for the first five years of repair work if interest is 4%.

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The council members of a small town have decided that the earth levee that protects the town from fl...

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