A new piece of equipment costs $100,000. The life of the equipment is estimated to be 15 years. During the first five years there will be no maintenance cost for it but after that the annul maintenance cost will be $20,000. The equipment is assumed to be useless at the end of its life. Compute the equivalent annual cost of owning it by taking į = 10%.

A new piece of equipment costs $100,000. The life of the equipment is estimated to be 15 years. During the first five years there will be no maintenance cost for it but after that the annul maintenance cost will be $20,000. The equipment is assumed to be useless at the end of its life. Compute the equivalent annual cost of owning it by taking į = 10%.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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