Calculate the uniform annual expenditure a

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Question: Edgar Froese oversees a project which has a fluctuating budget. The project he is handling, has 10 years of life. He needs to spend $1,000 per year for the first five years and then spend $1,500 a year, during the second five years of the project. Two major renovations are going to cost him $3,500 at the end of the fourth year, and another one at the end of the 8th year (each costing $3.5k). Calculate the uniform annual expenditure A, that would be equivalent to these fluctuating amounts throughout the project's life. The interest rate is 12% per year and you must include the CFD in your solutions.

Reference no: EM133364026

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