Question: Please answer this question using designated methods and hand calculations. 5. The analysis period is infinite at the annual interest rate of 10%. Initial machine
Please answer this question using designated methods and hand calculations.
5. The analysis period is infinite at the annual interest rate of 10%. Initial machine cost $400,000 Annual maintenance costs 20,000 Annual benefits 150,000 Life 20 years It is assumed to replace the machine every 20 years at $400,000 for an infinite period. The annual maintenance costs and benefits will be changed as follows: Annual maintenance costs increase $1,000 every year after the first year for the useful o Annual benefits decrease $5,000 every year after the first year for the useful life period Calculate the equivalent uniform annual benefit (EUAB) and equivalent uniform annual cost life period (EUAC). (15 points)
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