The overhead costs in a highly automated factory are expected to increase at an annual compound rate of 10 percent for the next 7 years. The overhead cost at the end of the first year is \(\$ 200,000\). What is the annual worth of the overhead costs for the 7-year period? The time value of money rate is 8 percent/ year.

a. \(\$ 263,250\)

b. \(\$ 231,520\)

c. \(\$ 200,000\)

d. \(\$ 187,020\)