Air conditioning for a college dormitory will cost $2.6 million to install and $145,000 per year to operate at current prices. The systemshould last 14 years. The real cost of capital is 6%, and the college pays no taxes. What is the equivalent annual cost?Note: Enter your answer in dollars not in millions and round your answer to 2 decimal places.Equivalent annual cost

Working:Hence, Equivalent annual cost = $424,720.76

Answered: Air conditioning for a college…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 3EB: A restaurant is considering the purchase of new tables and chairs for their dining room with an...

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