The council members of a small town have decided that the


The council members of a small town have decided that the earth levee that protects the town flooding should tie rebuilt and strengthened The town engineer estimates that the cost of the work at the end of the first year will be $85,000 He estimates that in subsequent years the annual repair costs will decline by $10,000, making the second year cost $75.000; the third year $65,000, and so on. The council members want to know what the equivalent present cost is (or the first 5 years of repair work it Interest is 4%.

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Financial Management: The council members of a small town have decided that the
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