8514

=

26,427

32,300

Annual fuel cost ($)

40,000

30,000

Total annual cost ($)

66,427

62,300

Therefore, on an annual cost basis, the upgraded thickness is a worthwhile investment because it reduces the

Table 15.9 Present-Value Discount Factors for an Income of $1 Per Year for the Next n Years

For a 15% cost of money, read down the 15% column of Table 15.9 to find a discount factor close to 5. The corresponding number of years is then read to the left, approximately 10 years in this case. For a cost of

Table 15.9 Present-Value Discount Factors for an Income of $1 Per Year for the Next n Years

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