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Calculate Equivalent Uniform Annual Cost for the Excavator
An earthwork contractor is considering the purchase of a new excavator. Based on 10% interest, the equivalent uniform annual cost for the excavator is most nearly:
EUAC = 80,000 (A/P, 10%, 20) - 20,000 (A/F, 10%, 20) + annual operating cost
80,000 (0.1175) - 20,000 (0.175) + 18,000
= 9400 - 350 + 18,000
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