Determine the equivalent uniform annual cost

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Reference no: EM131097692

Forte Bend County is planning to construct a Dam some tens of miles away from the Grand Mission Recreation center to facilitate fishing in the El Rehobatha River Basin. The first cost for the Dam will amount to $8,500,000. Annual maintenance and repairs will amount to $35,000 for each of the first five years, to $40,000 for each of the next ten years, and to $45,000 for each of the next five years. In addition a major overhaul costing $650,000 will be required at the end of the tenth year. Use an interest rate of 8% and determine the equivalent uniform annual cost (EUAC) for a 20year period.

Reference no: EM131097692

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