Question

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 now and for each year hereafter. The system has an installed cost of $204835 and an additional cost of $70000 at year 8. The annual software maintenance contract cost is $8482 for the first 5 years, $10,000 for the second 5 years, and $12,500 thereafter. In addition, there is expected to be a recurring major upgrade cost of $20,000 every 12 years. Assume that i= 9% per year for county funds

Answer 1