A southwestern city has a contract with Firestone Vehicle Fleet Maintenance to provide maintenance services on its

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A southwestern city has a contract with Firestone Vehicle Fleet Maintenance to provide maintenance services on its fleet of city-owned vehicles such as street sweepers, garbage trucks, backhoes, and carpool vehicles. The contract price is fixed at $45,000 per year for 4 years. If you were asked to convert the future amounts into constant-value amounts per today's dollars, what would the respective amounts be? Assume the current market interest rate of 10% per year and inflation rate of 5% per year are expected to remain the same over the next 4-year period.

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Engineering economy

ISBN: 978-0073376301

7th Edition

Authors: Leland Blank, Anthony Tarquin

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