Question: A municipality is considering a project that will result in an annual cost for the 1 st year of $ 2 5 0 , 0

A municipality is considering a project that will result in an annual cost for the 1st year of
$250,000. The cost of the project over the next 5 years will increase each year.
a. Find the present worth of the project over the next 5 years, assuming i =7% and g =4%
per year.
b. Assuming i =7% and g =4% per year, what is the equivalent uniform series cost of the
project?
c. Find the present worth of the project over the next 5 years, assuming i =7% and g =7%
per year.
d. Assuming i =7% and g =7% per year, what is the equivalent uniform series cost of the
project?

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