(Solved): A construction company in Lahore has arranged to purchase the asphalt batching plant through a 12-ye ...

A construction company in Lahore has arranged to purchase the asphalt batching plant through a 12-years contract. An initial payment of Rs. 950,000 is made now. Additionally, Rs. 50,000 per year, starting 1 year from now will be paid for the first 6 years. The amounts will be increased by 10,000 per year thereafter for the next 6 years. Use

per year to determine the equivalent total present worth for all these cash flows.