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1. Below are the projected costs of the initial construction and yearly maintenance of a large municipal swimming pool. Assume an interest rate of 8%.

1. Below are the projected costs of the initial construction and yearly maintenance of a large municipal swimming pool. Assume an interest rate of 8%. In what year should the pool be replaced. What is the minimum EUAC of the pool to the closest dollar and in what year does it occur?

Year Cost

0 $325,000

1 $0

2 $11,000

3 $15,000

4 $37,000

5 $56,000

6 $78,000

7 $92,000

8 $97,000

9 $108,000

10 $115,000

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