Engineering Economics Analysis

Domino's Pizza is one of the largest fast-food company in the world by having a lot of
shops spread around the world, Domino's Pizza in Malaysia alone has 200 stores. As a
large Domino's Pizza will certainly continue to develop his business by opening new
stores. Based on the foregoing Domino Pizza wants to know the costs that must be
incurred if Domino's Pizza opens new stores by buying a building or store where the
building was in need of repair and maintenance costs as much as RM20, 000 in the first,
and it is estimated that the cost of RM5, 000 will increase each year for the duration of 8
years, then what is the money that must be supplied by the company domino's pizza for
the maintenance and repair if interest rates accounted for 7% per year

0 1 2 3 4 5 6 7 8

20,000 i = 7%
25,0000
30,0000

P=? 35,0000
40,0000
G = 5000 45,0000

50,0000

55,0000
A = 20,000+G(A/G, 7%, 8)
= 20,000+5,000(3.145541)
= 20,000+ 15,727.705
= 35,727.705

P = A(P/A, 7%, 8)
= 35,727.705(5.971299)
= 213,340.81