Wiley Coyote plans to invest in the "Catch RR" project. He expects the project to be a perpetually long project. His investment plan is shown in the table below.
At a 2% interest rate, how much money should Wiley Coyote set aside now in order to sustain this perpetual project?
Draw a CFD
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Amount
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Year incurred
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Initial Cost
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$300,000
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Year 0
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One time upgrade cost
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$120,000
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Year 15
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Annual Operation and Maintenance
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$1,500
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Every year forever
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Major Maintenance Costs
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$10,000
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First in year 10, then every 10 years
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