Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Exercise 6

Western Hydra Systems makes a panel milling machine with a 2.7-m-diameter milling head that emits low vibration and processes stress-relieved aluminum panels measuring up to 6000 mm long. The company wants to borrow money for a new production/warehouse facility. If the company offers to repay the loan with $60,000 in year 1 and amounts increasing by $10,000 each year through year 5, how much can the company borrow at an interest rate of 10% per year