Answer:
575,010.25
Explanation:
i = 5%. n = 20 Years. P = 6,500,000.
Annual Maintenance Cost for the first five years, A1 = 25,000.
Annual Maintenance Cost from year 6 thro' 15, A2 = 30,000.
Annual Maintenance Cost from year 16 thro' 20, A3 = 35,000.
Overhaul Costs = 500,000 at year 10.
EUAC = [6,500,000 + 500,000 (P/F, 5%, 10)] (A/P, 5%, 20) +
25,000 +[{5000 (F/A, 5%, 5) + 5000(F/A, 5%, 15)} (A/F, 5%, 20)]
= [6,500,000 + 500,000 (0.6139)] (0.0802) +
25,000 +[{5000 (5.526) + 5000 (21.579)}(0.0302)]
= 545,917.39 + 29,092.86 = 575,010.25
