Find the present worth at time 0 of the chrome plating costs shown in the cash flow diagram. Assume i = 10% per year.
What will be an ideal response?
P = [2000(P/A,10%,6) – 200(P/G,10%,6)](F/P,10%,1)
= [2000(4.3553) – 200(9.6842](1.10)
= $7451.14
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