Present worth of the annual disbursements, Accounting Basics

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Present worth of the annual disbursements

The maintenance cost for an investment is $2,000 per year for the first 10 years and $1,000 per year thereafter. The investment has infinite life. With a 10% interest rate, what is the present worth of the annual disbursements? The answer is $16,144.60. How do we get this?

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Accounting Basics: Present worth of the annual disbursements

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Accounting Basics: Present worth of the annual disbursements

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