Question 7: Arithmetic Gradients (Lecture 4) Note: THIS QUESTION IS ONLY WORTH 5 MARKS A power company has just bought a new generator. It is currently Year 0 , and the company expects to use the generator for half a century. The power company's MARR is 10% (ten percent) per year. The generator's maintenance costs are expected to be $0 in Year 0 , and $11,000 in Year 1 , after which the costs will go up by $1,000 per year, so they will be $12,000 in Year 2,$13,000 in Year 3, etc. The final maintenance payment is in Year 50. Find the magnitude of the single Year 0 payment that is equivalent to the entire sequence of maintenance costs, to the nearest cent. In other words, find P such that paying these maintenance costs is like paying SP in Year 0. For full marks, use (A/G,i,N) and (P/A,i,N) when showing your work. You may also use other discount factors if you need to. Note: You are being graded almost entirely on your work. The correct answer with no work shown will receive at most 28% of the marks for this question. Equivalent single payment: $ in Year 0 Work: (Remember to use (A/G,i,N) and (P/A,i,N). There's more room on the next page if you need it.)