Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

تمرين 28

The data below show two patterns of inflation that are exactly the opposite of each other over a 20-year time period.
a) If each machine costs $10,000 in year 0 and they both increase in cost exactly in accordance with the inflation rate, how much will each machine cost at the end of year 20
b) What is the average inflation rate over the time period for machine A (that is, what single inflation rate would result in the same final cost for machine A)
c) In which years will machine A cost more than machine B