Question: Consider the cash flow diagram shown below. Using an interest rate of 6% for discounting purposes determine the present worth, the equivalent annual worth, and

 Consider the cash flow diagram shown below. Using an interest rate

Consider the cash flow diagram shown below. Using an interest rate of 6% for discounting purposes determine the present worth, the equivalent annual worth, and the future worth at the end of the last year of the cash flow diagram (period = year). A 5 metre blade width grader with 300 HP costs $2 million and has an operating life of 35,000 hours. Total operating cost for using this grader is $100 per hour. The grader will operate 5,000 hours per year. The interest rate is assumed at 10%. What is the total cost of using this grader today

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