Calculate the present worth of the contract

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Reference no: EM131083751

Chevron Corporation currently contracts their dewatering unit operation in their South Korea natural gas plant to Asian Pacific oil. Contract renewal for 10 years will cost $8500 annually for the next 5 years, and SI 10,000 in years 6, 7, 8, and 9 while in the 10 h year, it is intended to pay 50% of the contract cost in year 1. The contract is operated at a MARR of 11% assuming payment is made at the end of each contract year.

Calculate the overall equivalent uniform annual cost of the contract

Determine the future value of the contract

Reference no: EM131083751

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Calculate the present worth of the contract : Chevron Corporation currently contracts their dewatering unit operation in their South Korea natural gas plant to Asian Pacific oil. Contract renewal for 10 years will cost $8500 annually for the next 5 years, and SI 10,000 in years 6, 7, 8, and 9 wh..

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