Question

you are considering a new fire extinguisher service contract option that will combine the periodic inspections with any required maintenance into the same pre-negotiated service fee. the first year fee for the service contract is estimated to be $110,000. the contract will allow for an additional $4500 for every year that you continue the contract. if you exercise every option year, you could use this contract for 7 years.

step 1: what is the term of analysis, presuming you exercise all the option years? note: enter your answer only using numbers such as \1,234.56.\ do not use any characters (e.g. $, %, or years). likewise, do use commas to discriminate thousands and millions, and do use periods as decimal points. (us standard)

Explanation:

Identify the term of analysis from the problem statement

$$ N = 7 $$

Answer:

Step 1: What is the term of analysis, presuming you exercise all the option years? <blank>7</blank>