Question: The lease cost for a specialized highway design software package is estimated to be $13,000 for each of years 1, 2, and 3 (future dollars).

The lease cost for a specialized highway design software package is estimated to be $13,000 for each of years 1, 2, and 3 (future dollars).

(a) Calculate the CV amount today (year 0) of each future cost estimate at the inflation rate of 6% per year.

(b) Develop a spreadsheet and graph for inflation rates of 3%, 6%, and 8% per year that show the CV today.

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a CV 0 year 1 estimate 130001 006 1 12264 CV 0 year 2 estimate 130001 006 2 11570 ... View full answer

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