Equivalent annual worth of costs

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Reference no: EM138150

Q. A mechanical engineer who recently graduated with a master's degree is contemplating starting his own commercial heating and cooling company. As he can buy a web page design package aimed at delivering information only for $600 per year. If his business is victorious, he will buy a more elaborate e-commerce package costing $4000/year. If the engineer uses the information-only site for the first 2 years and then he purchases the e-commerce package, what is the equivalent annual worth of costs for the website over a total of 6 years at an interest rate of 12% per year.

Reference no: EM138150

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