Illustrate what is the present worth of planned expenditure

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A mechanical conslting company is examining its cash flow requirements for the next 7 years. the company expects to replas office machine and computer equipment at various times over the 7-year planing period. Specifically, the company expects to spend $7000 two years from now, $900 three years from now, and $5000 five years from now. What is the present worth of the planned expenditures at an interst rate of 10% per year?

Reference no: EM1364273

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