Question

In a new doubles factory the channa, flour, and cooking oil costs in the first year...

In a new doubles factory the channa, flour, and cooking oil costs in the first year of operation are $30,000, $25,000, and $15,000 respectively. They expect these three costs to change at the following annual compound rates: channa decreases at 5%, flour increases at 6% and oil increases at 3%. Using an interest rate of 10% compounded annually, what uniform annual costs over a 5-year period would be equivalent to the cumulative channa, flour, and cooking oil costs?

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