Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Exercise 34

Bob, a philanthropist, is not sure what rate of return his gifts may realize once donated to his favorite charity. Determine the capitalized cost of $10,000 every 5 years forever, starting 5 years from now at an interest rate of
a) 3% and b) 8% per year. (c) Explain the significant difference between the two capitalized costs.