Pollution control equipment for a pulverized coal cyclone furnace is estimated to cost $190,000 two years from now and an additional $120,000 four years from now. If Monongahela Power wants to set aside enough money now to cover these future costs, how much must be invested at an interest rate of 8% per year, compounded semiannually?

What will be an ideal response?


P = 190,000(P/F,4%,4) + 120,000(P/F,4%,8)
= 190,000(0.8548) + 120,000(0.7307)
= $250,096

Trades & Technology

You might also like to view...

Which type of thermally managed fan has no external controls?

A. thermatic viscous drive B. electrically engaged C. fanstat controlled D. electric over pneumatic

Trades & Technology

What are the two types of mist systems for watering plants?

What will be an ideal response?

Trades & Technology

After take-off is completed, the estimator applies all costs, including overhead, to determine the cost to the company; next, the desired profit is added, and then the price is given to the client

Indicate whether the statement is true or false

Trades & Technology

OSHA’s Ergonomic Standard passed but was later repealed.