Question

The cost of lighting and maintaining the tallest smokestack in the US (at a shuttered ASARCO refinery) is $90,000 per year. At an interest rate of 10% per year, the present worth of maintaining the smokestack for 10 years is closest to: a. $1,015,000 GE 311 Financial Decisions in Engineering Skill Development Assignment

Answer 1

$553,000

Step-by-step explanation:

Calculation for the present worth of maintaining the smokestack for 10 years

Present worth=$90,000(P/A,10%,10)

Present worth= $90,000(6.144567)

Present worth= $553,011.04

Present worth=$553,000 (Approximately)

Therefore the present worth of maintaining the smokestack for 10 years is closest to:$553,000