If the marr is 9%, the uniform annual equivalent maintenance cost is -305
Rate = 9%
First Calculate the Present worth
Presnt worth = Expense in 5 years(P/F, 9%, 5) + Expense in 10 years(P/F, 9%, 10) + Expense in 15years(P/F, 9%, 10)
= 1000*(0.6499) + 2000x(0.4224) + 3500(0..2745)
= 2455.63
Uniform expense = Presnt worth x (A/P, 9% 15) = 2455.63 x 0.1241 = 304.665 ( close to 305)
The yearly cost of owning, running, and maintaining an asset throughout the course of its life is known as the equivalent annual cost, or EAC. EAC is frequently used by businesses to make capital budgeting choices since it enables them to evaluate the cost-effectiveness of different assets with different lifespans.
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