3. A medium-size consulting engineering firm is trying to decide whether it should replace its office furniture now or wait and do it 1 year from now. If it waits 1 year, the cost is expected to be $16,000. At an interest rate of 10% per year, what would be the equivalent cost now?

Fundamentals Of Construction Estimating
4th Edition
ISBN:9781337399395
Author:Pratt, David J.
Publisher:Pratt, David J.
Chapter18: Life-cycle Costing
Section: Chapter Questions
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3. Amedium-size consulting engineering firm is trying to decide whether it
should replace its office furniture now or wait and do it 1 year from now. If
it waits 1 year, the cost is expected to be $16,000. At an interest rate of 10%
per year,
what would be the equivalent cost now?
Transcribed Image Text:3. Amedium-size consulting engineering firm is trying to decide whether it should replace its office furniture now or wait and do it 1 year from now. If it waits 1 year, the cost is expected to be $16,000. At an interest rate of 10% per year, what would be the equivalent cost now?
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