Engineering, 31.05.2020 00:03 kitam2871

The property appraisal district for Marin County has just installed new software to track
residential market values for property tax computations. The manager wants to know the total
equivalent cost of all future costs incurred when the three county judges agreed to purchase
the software system. If the new system will be used for the indefinite future, find the
equivalent value (a) now and (b) for each year hereafter. The system has an installed cost of
$188,888 and an additional cost of $88,888 at year 18. The annual software maintenance
contract cost is $8,888 for the first 8 years, $13332 for the second 8 years, $17,776 for the
third 8 years, and $17,776 thereafter. In addition, there is expected to be a recurring major
upgrade cost of $18,888 every 14 years. Assume that i= 7% per year for county funds.

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