Air conditioning for a college dormitory will cost $2.1 million to install and $170,000 per year to

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Air conditioning for a college dormitory will cost $2.1 million to install and $170,000 per year to operate. The system should last 19 years. The real cost of capital is 9%, and the college pays no taxes. What is the equivalent annual cost?

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Principles of Corporate Finance

ISBN: 978-1259144387

12th edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen

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Posted Date: Mar 14, 2024 03:42 AM

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Air conditioning for a college dormitory will cost $2.1 million to install and $170,000 per year to

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To find the equivalent annual cost EAC we need to calculate the annuity payment that would equate to ... View the full answer

Principles of Corporate Finance

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