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A firm is seeking your help to conduct equivalent uniform annual worth of the monitoring system before purchasing the new equipment.
Take i = 4.5% per year.
Draw cash flow diagram.
Year System
Initial Cost
$75000
Maintenance Cost ( Year 3) $1800
Maintenance Cost ( Year 4) $1900
+Cost Gradient 5-9years $250 per year
Annual Revenue
$7500
Salvage Value $9500
Useful lives 10 years