Chapter 17, Problem 17.76EAA

To determine

Equivalent Uniform Annual cost:

Equivalent uniform annual cost is a cost concept which suggest constant annual cost over a period of life of project rather than the cost at irregular periods during the lifetime of projects. This is determined by computing the present values of various cost incurred during the life of the project and then it will be divided by Annuity present value factor for the life of the project at the rate of cost of capital.

The Equivalent uniform annual cost of maintenance of project.