A road building contractor has received a major highway construction contract that will require…


A course fabric curtailor has common a greater highway construction curtail that succeed demand 50,000 m3 of crushed stone each year for 5 years. The needed stone can be obtained from a quarry for $5.80/m3. As an alternative, the curtailor has determined to try and acquisition the quarry. He believes that if he owned the quarry, the stone would singly consume him $4.301m3. He thinks he could resell the quarry at-the end of 5 years for $40,000. If the contractor uses a 10% attention trounce, how considerable would he be succeeding to pay for the quarry?