Assignment:
Problem
The constntction of a dam will cost $1.000 at time 0, 5500 in year 1. and $500 in year 2. It will be completed at the end of year 2. From year 3, maintenance costs will be $100 per year through year 10. From years 11 on, maintenance costs will be 5150 per year forever. Find the present worth of all the costs if i = 10%. Assume all costs incurred to be at the end of the respective year.