Answer: $166.430 per year
Step-by-step explanation:
0= -900000+AOC(P/A, 40%,3)
0= -900000+AOC(1.5889)
result we get
AOC= $566430
Require reduction = 566430-400000
result we get
$166.430 per year
Short method: multiply constants

Long mothod: expand it

Answer: 42
Answer: 272.85
(It’s 21.4 times 12.75)