Question: A tractor costs $12,500 and will be used for five years when it is estimated to have a salvage value of $4,000. Maintenance costs are

A tractor costs $12,500 and will be used for five years when it is estimated to have a salvage value of $4,000. Maintenance costs are estimated to be a $100 the first year and increase by $100 each year thereafter. If i = 12%, what is the equivalent uniform annual cost (EUAC) for the tractor?

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