A company is considering buying a new piece of machinery. The initial cost of the machine is 80,000 and its salvage value is 20,000 at the end of 20 years. Annual operating cost is 18,000. What is the equivalent uniform annual cost of the machine based on 10% interest rate?

Structural Analysis
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ISBN:9781337630931
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Chapter2: Loads On Structures
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A company is considering buying a new piece of machinery. The initial cost of the machine is
80,000 and its salvage value is 20,000 at the end of 20 years. Annual operating cost is 18,000.
What is the equivalent uniform annual cost of the machine based on 10% interest rate?
Transcribed Image Text:A company is considering buying a new piece of machinery. The initial cost of the machine is 80,000 and its salvage value is 20,000 at the end of 20 years. Annual operating cost is 18,000. What is the equivalent uniform annual cost of the machine based on 10% interest rate?
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