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 $$206,000$ and qualifies for five$-$year MACRS depreciation. At the end of the three$-$year contract, you expect to be able to sell the equipment for $$60,000.$ If the projected

operating expense for the equipment is $$62,000$ per year, what is the after$-$tax equivalent uniform annual cost $($EUAC$)$ of owning and operating this equipment? The effective income tax rate is $30\%,$

and the after$-$tax MARR is $11\%$ per year.

Click the icon to view the GDS Recovery Rates $(r_k)$ for the $5-$year property class.

Click the icon to view the interest and annuity table for discrete compounding when the MARR is $11\%$ per year.

The after$-$tax equivalent uniform annual cost is $$,($Round to the nearest dollar.$)$

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