Answer:
$9,287.63
Explanation:
Data provided in the question:
Amount invested = $60,000
Operating cost for the first year = $4000
Operating and maintaining cost after 1 year = $3,000
Selling price = $60,000
Now,
Amount paid extra in the year 1 = $4,000 - $3,000
= $1,000
EUAC ($)
= $60,000 × A/P(10%, 4) + $3,000 + $1,000 × P/F(10%, 1) × A/P(10%, 4) - [ $60,000 × P/F(10%, 4) × A/P(10%, 4) ]
= [ $60,000 × 0.3155 + 3,000 + 1,000 × 0.9091 × 0.3155 ] - [ 60,000 × 0.6830 × 0.3155 ]
= [ $18,930 + $3,000 + $286.82 ] - [ $12,929.19 ]
= $9,287.63
