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Economics

A small town wants to acquire an electric generator facility for half a million dollars. It will cost approximately $4,500/year to maintain the facility. The facility has an expected useful life of about 50 years. The annual interest rate is 6%

a. What is the present worth of the capital and maintenance costs of the facility? (May need a cash flow diagram)

b. What is the EUAC (equivalent uniform annual cost) of the facility over its useful life?

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91228516

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