A capital asset has first cost of $10,000 and it depreciates at 10% rate annually. Operating costs over next four years are given below Year Operating costs, $/year 1 1,200 2 2,200 3 3,800 2,200 Operating costs are expressed in actual dollars. Calculate EAC (Operating) if real interest rate is 10% and annual inflation is 2%. (Note: Don't use the $ sign in your answer and round it to 2 decimal places)

A capital asset has first cost of $10,000 and it depreciates at 10% rate annually. Operating costs over next four years are given below Year Operating costs, $/year 1 1,200 2 2,200 3 3,800 2,200 Operating costs are expressed in actual dollars. Calculate EAC (Operating) if real interest rate is 10% and annual inflation is 2%. (Note: Don't use the $ sign in your answer and round it to 2 decimal places)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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