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# Construction Information Services

## Present Worth Calculator

To manage is to forecast and plan, to organize, to command, to coordinate and to control.
*- HENRI FAYOL*

First altrenative:

- Initial Cost:£5000
- Running Cost:£500
- Life time:6 years

- Initial Cost:£4000
- Running Cost:£800
- Life time:6 years

The

The

(fractions ignored above)

Thus since first alternative has smaller

What is being compared is the £1000 extra initial investment of the first Alternative, with the £300 extra running costs of the second Alternative

In other words is £1000 now more or less than £300 each year for six years, with obtainable interest rates being 7%?

It is now clear that £1000 now is £430 less than £300 for six years.