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Equivalent uniform annual worth

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The Cholpsis Home Products Company installed a new machine today to produce cornhusk-based disposable utensils. The machine's initial cost is $20,000 and it is expected to be used for the foreseeable future. Beginning a year from today, the machine will bring $2,600 revenue annually. Maintenance costs are $200 and will be incurred every year beginning 5 years or 7 years from today with equal probability. If the market rate is 10%, what is the EXPECTED equivalent uniform annual worth of this machine?

Reference no: EM131294660

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