The operating cost for a pulverized coal cyclone furnace is expected to be $80,000 per year. The steam produced will be needed for only 6 years beginning now (i.e., years 0 through 5). What is the equivalent annual worth in years 1 through 5 of the operating cost at an interest rate of 10% per year?

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Chapter11: Capital Budgeting Decisions
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The operating cost for a pulverized coal cyclone
furnace is expected to be $80,000 per year. The
steam produced will be needed for only 6 years beginning
now (i.e., years 0 through 5). What is the
equivalent annual worth in years 1 through 5 of the
operating cost at an interest rate of 10% per year?

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