Question

A company is considering buying a CNC machine. In​ today's dollars, it is estimated that the maintenance costs for the machine​ (paid at the end of each​ year) will be

​$31,000​,

​$32,000​,

​$35,000​,

​$36,000​,

and

​$38,000

for years 1 to​ 5, respectively. The general inflation rate

​( f ​)

is estimated to be

6​%

per​ year, and the company will receive

15​%

return​ (interest) per year on its invested funds during the inflationary period. The company wants to pay for maintenance expenses in equivalent equal payments​ (in actual​ dollars) at the end of each of the five years. Find the amount of the​ company's payments.

The amount of the​ company's payments is

​$_____?

thousand. ​(Round to the nearest​ thousand.)

Answer 1