Question: From Challenger Minimum EUAC Section: 1. Below are the projected costs of the initial construction and yearly maintenance of a large municipal swimming pool. Assume

From Challenger Minimum EUAC Section:

1. Below are the projected costs of the initial construction and yearly maintenance of a large municipal swimming pool. Assume an interest rate of 8%. In what year should the pool be replaced. What is the minimum EUAC of the pool to the closest dollar and in what year does it occur?

Year

Cost

0

$325,000

1

$0

2

$11,000

3

$15,000

4

$37,000

5

$56,000

6

$78,000

7

$92,000

8

$97,000

9

$108,000

10

$115,000

Answers: Year pool to be replaced:_____, Minimum EUAC:__________ , Year of minimum EUAC:_____ <25 pts>

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