What is the equivalent future worth of the maintenance cost

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Reference no: EM132807895

Eurotiles Industrial Corporation, which is located in Silang, Cavite is known to produce durable ceramic wall and floor tiles. In order to vitrify the formulated ceramic tiles, it is subjected to high temperature through a high temperature kiln at 1100?. The maintenance cost of the kiln has been constant at ?80, 000.00 per year for the past 8 years. If the interest rate was 2% for the first three years, then it increased to 8% for the next two years and increased to 10% in the years 6, 7 and 8.

Problem a) What is the equivalent future worth of the maintenance cost? show the Cash Flow diagram (with functional symbols) and complete solution in your solution sheet.

Reference no: EM132807895

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