A piece of construction equipment will cost $6,000 new and will have an expected life of 6 years, with no salvage value at the end of its life. The disbursements for taxes, insurance, maintenance,fuels,and lubricants are estimated to be $1,500 the first year,$1,700 the second, $1,900 the third,and to continue to increase by $200 each year thereafter. What is the equivalent uniform annual cost of this piece of equipment if the rate of interest is 12%?
Question
Edson
