ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Chapter 6, Problem 4P
To determine

To compute: the uniform annual cost for the five years for which the device was used.

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During the 1st 10 year life of a certain machine the following were spent for its maintenance: a) P10T each year for the 1st 5 years b) P15T each year for the next 5 years c) P20T at the end of 4rd year for overhauling and d) P25T at the end of the 7th year for overhauling. If i= 20% compounded quarterly, what was the equivalent uniform annual cost for the 10-year period.
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