1. Benefits and Costs Over Time Year Benefit Cost Year Benefit Cost...
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Accounting
1. Benefits and Costs Over Time Year Benefit Cost
Year
Benefit
Cost
0
$30,000
$0
1
$0
$10,000
2
$0
$10,000
3
$0
$10,000
4
$0
$10,000
. The table above summarizes a possible purchase of a home upgrade that you value at $30,000. The cost of the upgrade is $40,000, but you negotiate with the seller for a zero-interest loan to be paid in 4 annual installments of $10.000. The benefits are measured in dollars of the "enjoyment" you gain from the upgrade and the costs are measured in the price of the work. Assume the interest rate is 17% (you can interpret this "interest" rate as meaning that if you used the $40,000 up front, you could have missed out on gains in the stock market or elsewhere of 17% per year for 4 years). What are the present value (PV) costs of the upgrade?
Note: enter answer with only numerical values and round up to the nearest tenth. For example, if you think the answer is "$101.58" then enter the answer "101.6" in the space below.
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