Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Exercise 42

A company that manufactures air-operated drain valve assemblies budgeted $74,000 per year to pay for plastic components over a 5-year period. If the company spent only $42,000 in year 1, what uniform annual amount should the company expect to spend in each of the next 4 years to expend the entire budget Assume the company uses an interest rate of 10% per year.