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28 Sep 2019
A small town wants to acquire an electric generator facility for half a million dollars. It will cost approximately $5,000/year to maintain the facility. The maintenance costs will begin at the end of the third year, and the facility has an expected useful life of about 50 years. The interest rate is 7%.
1. What is the present worth of the capital and maintenance costs of the facility?
2. What is the EUAC (equivalent uniform annual cost) of the facility over its useful life?
Ā
A small town wants to acquire an electric generator facility for half a million dollars. It will cost approximately $5,000/year to maintain the facility. The maintenance costs will begin at the end of the third year, and the facility has an expected useful life of about 50 years. The interest rate is 7%.
1. What is the present worth of the capital and maintenance costs of the facility?
2. What is the EUAC (equivalent uniform annual cost) of the facility over its useful life?
Ā
1
answer
0
watching
94
views
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Romarie Khazandra MarijuanLv10
28 Sep 2019