Find costs incurred to be at the end of the respective year

Reference no: EM13204846

The construction of a dam will cost $1,000 at time 0, $500 in year 1, and $500 in year 2. It will be completed at the end of year 2. From year 3, maintenance costs will be $100 per year through year 10. From years 11 on, maintenance costs will be $150 per year forever. Find the present worth of all the costs if i = 10%. Assume all costs incurred to be at the end of the respective year.

Reference no: EM13204846

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