Question: Please show work Your company has just signed a three-year nonrenewable contract with the city of New Orleans for earthmoving work. You are investigating the



Please show work
Your company has just signed a three-year nonrenewable contract with the city of New Orleans for earthmoving work. You are investigating the purchase of heavy construction equipment for this job. The equipment costs $198,000 and qualifies for five-year MACRS depreciation. At the end of the three-year contract, you expect to be able to sell the equipment for $77,000. If the projected operating expense for the equipment is $64,000 per year, what is the after-tax equivalent uniform annual cost (EUAC) of owning and operating this equipment? The effective income tax rate is 27%, and the after-tax MARR is 13% per year. Click the icon to view the GDS Recovery Rates (rk) for the 5-year property class. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 13% per year. The after-tax equivalent uniform annual cost is $ (Round to the nearest dollar.) More Info More Info
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