## Calculate the equivalent uniform annual cost, Civil Engineering

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A contractor purchased an excavator for \$100,000. The life expectancy is 10-years. With the annual interest rate at 7%, the annual cost for the excavator is most nearly:

Solution: Equivalent Uniform Annual Cost

(EUAC)   = P (A/P, i, n)

= 100,000(A/P, 7%, 10)

= \$14,200

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