Find lump sum to set aside now to cover annual maintenance


A new dam project will require $48,000 a year in maintenance costs after it is complete. These maintenance costs will continue forever. Assume that the funding can be set aside in an account that earns 5% interest per year. What is the lump sum to be set aside now in order to cover the $48,000 in annual maintenance costs?

Request for Solution File

Ask an Expert for Answer!!
Mechanical Engineering: Find lump sum to set aside now to cover annual maintenance
Reference No:- TGS0738721

Expected delivery within 24 Hours