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A construction firm needs a new small loader. It can be purchased for $20,000. The firm expects the loader to have a salvage value of $5,000 after 7 years. The maintenance cost will be $1,400 each year. The firm's interest rate is 8% per year. Compute the Equivalent Uniform Annual Worth (EUAW). EUAW = EUAB - EUAC Submit the absolute value of your answer (positive value). Margin of error: +/- 50

A construction firm needs a new small loader. It can be purchased for $20,000. The firm expects the loader to have a salvage value of $5,000 after 7 years. The maintenance cost will be $1,400 each year. The firm's interest rate is 8% per year. Compute the Equivalent Uniform Annual Worth (EUAW). EUAW = EUAB - EUAC Submit the absolute value of your answer (positive value). Margin of error: +/- 50

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A construction firm needs a new small loader. It can be purchased for $20,000. The firm expects the loader to have a salvage value of $5,000 after 7 years. The maintenance cost will be $1,400 each year. The firm's interest rate is 8% per year. Compute the Equivalent Uniform Annual Worth (EUAW). EUAW = EUAB - EUAC Submit the absolute value of your answer (positive value). Margin of error: +/- 50
Transcribed Image Text:A construction firm needs a new small loader. It can be purchased for $20,000. The firm expects the loader to have a salvage value of $5,000 after 7 years. The maintenance cost will be $1,400 each year. The firm's interest rate is 8% per year. Compute the Equivalent Uniform Annual Worth (EUAW). EUAW = EUAB - EUAC Submit the absolute value of your answer (positive value). Margin of error: +/- 50
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