What is the lump-sum equivalent cost of the project


Problem

A certain fluidized-bed combustion vessel has an investment cost of $100,000, a life of 10 years, and negligible market (resale) value. Annual costs of materials, maintenance, and electric power for the vessel are expected to total $10,000. Amajor relining of the combustion vessel will occur during the fifth year at a cost of $30,000. If the interest rate is 15% per year, what is the lump-sum equivalent cost of this project at the present time?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: What is the lump-sum equivalent cost of the project
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