What is the equivalent uniform annual cost

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Reference no: EM132065690

Springfield is planning to build a new water treatment facility. The first cost of the facility will be $854036. Annual maintenance and repairs will be $19545 for each of the first 5 years, increase to $35739 for each of the next 10 years, and increase again to $60385 for each of the next 5 years. Springfield is also planning for a major overhaul at the end of 10 years which is estimated to cost $185054 and another minor overhaul at the end of 17 years which is estimated to cost $28777. Using an interest rate of 2.5%, what is the equivalent uniform annual cost (EUAC) for this system?

Reference no: EM132065690

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