(a) Calculate the perpetual equivalent annual worth in future dollars for years 1 through for income...

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(a) Calculate the perpetual equivalent annual worth in future dollars for years 1 through ∞ for income of $50,000 now and $5000 per year thereafter. Assume the market interest rate is 8% per year and inflation averages 4% per year. All amounts are quoted as future dollars.

(b) If the amounts had been quoted in CV dollars, what is the annual worth in future dollars?

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Engineering Economy

ISBN: 978-0073523439

8th edition

Authors: Leland T. Blank, Anthony Tarquin

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