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Calisto Launch Services is an independent space corporation and has been contracted to develop and launch one of two different satellites. Initial equipment will cost $620,000 for the first satellite and $680,000 for the second. Development will take 5 years at an expected cost of $150,000 per year for the first satellite; $140,000 per year for the second. The same launch vehicle can be used for either satellite and will cost $265,000 at the time of the launch 5 years from now. At the conclusion of the launch, the contracting company will pay Calisto $2.5 million for either satellite. What is the future worth of the first satellite and second satellite, use MARR of 10% per year?

Calisto Launch Services is an independent space corporation and has been contracted to develop and launch one of two different satellites. Initial equipment will cost $620,000 for the first satellite and $680,000 for the second. Development will take 5 years at an expected cost of $150,000 per year for the first satellite; $140,000 per year for the second. The same launch vehicle can be used for either satellite and will cost $265,000 at the time of the launch 5 years from now. At the conclusion of the launch, the contracting company will pay Calisto $2.5 million for either satellite. What is the future worth of the first satellite and second satellite, use MARR of 10% per year?

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Calisto Launch Services is an independent space corporation and has been contracted to develop and launch one of two different satellites. Initial equipment will cost $620,000 for the first satellite and $680,000 for the second. Development will take 5 years at an expected cost of $150,000 per year for the first satellite; $140,000 per year for the second. The same launch vehicle can be used for either satellite and will cost $265,000 at the time of the launch 5 years from now. At the conclusion of the launch, the contracting company will pay Calisto $2.5 million for either satellite. What is the future worth of the first satellite and second satellite, use MARR of 10% per year?
Transcribed Image Text:Calisto Launch Services is an independent space corporation and has been contracted to develop and launch one of two different satellites. Initial equipment will cost $620,000 for the first satellite and $680,000 for the second. Development will take 5 years at an expected cost of $150,000 per year for the first satellite; $140,000 per year for the second. The same launch vehicle can be used for either satellite and will cost $265,000 at the time of the launch 5 years from now. At the conclusion of the launch, the contracting company will pay Calisto $2.5 million for either satellite. What is the future worth of the first satellite and second satellite, use MARR of 10% per year?
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