Based on a discount rate of 2.8%, what is the 2021 present value of the costs of
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Question:
Based on a discount rate of 2.8%, what is the 2021 present value of the costs of the three alternatives estimated to accrue over the next 5 years. Do not discount 2021 costs. Please be sure to show your work. For each alternative, to find the 2021 present value, you must calculate the 2021 value for each year and then sum the adjusted amounts across all five years.
Year: | 2021 Present Value | 2021 | 2022 | 2023 | 2024 | 2025 |
Alternative 1 cost | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | |
Alternative 2 costs | $10,000 | $20,000 | $30,000 | $40,000 | $50,000 | |
Alternative 3 costs | $50,000 | $25,000 | $25,000 | $25,000 | $25,000 |
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