What is the present worth of cost at given interest

Reference no: EM132071040

Question: A regular routine overhauling of the Fractional distillation units managed by Total Oil are estimated to be $ 120,000 at the end of year 1, $ 180,000 in 2 years, $230,000 in years 3 and 4. while the estimated cost for the 5^th year is $145000. What is the present worth of cost at an interest of 12% per year compounded quarterly? Before you solve for the Present Worth, you are required to draw the cash flow diagram and identify all the engineering symbols.

Reference no: EM132071040

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