Question

you buy $2,000 worth of equipment expected to last 15 years (with no salvage value). if the interest rate is 2.0%, what is the closest expected uniform annual cost (euac)?

Answer 1

The equation of EUAC is:

EUAC = 2,000(A/P,2%,15) - 0(A/F,2%,15)

Expected Uniform Annual Cost (EUAC) show the life cycle values as an annualized estimate of cash flow instead of a lumpsum estimate of present price.

From the scenario, we were informed that

Purchased price = $ 2,000

Number of years = 15 years

The salvage value after 15 years = $0

The rate of interest annually = 2%

EUAC = 2,000(A/P,2%,15) - 0(A/F,2%,15)

So, the equation of EUAC is

EUAC = 2,000(A/P,2%,15) - 0(A/F,2%,15)

Learn more about EUAC, here https://brainly.com/question/14580707

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