A new piece of equipment is expected to cost $30,000, will require $6,000 per year in maintenance costs, and is expected to save $10,000 per year in labor costs. If the equipment has a salvage value of $5,000 and a lifetime of 10 years, what will the Equivalent Annual Worth (EUAW) be for this unit? Assume your company uses an MARR of 5%.
Type in your answer to the nearest $50 using the following format, without decimal places: $XXXX. (i.e. $918.17 type in as:$0900 )
Show your work on your worksheet.
EUAW=NPV/(1+I)+annual costs... View the full answer