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2-28 C = Capital Cost, OC = Operating Cost, L = Salvage Value All Values are in Thousands. C=$1,500 0 OC=$400 1 OC =$500 2

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2-28 C = Capital Cost, OC = Operating Cost, L = Salvage Value All Values are in Thousands. C=$1,500 0 OC=$400 1 OC =$500 2 L=$300 OC=$600 3 Other opportunities exist to invest money at a nominal 15.0% interest rate compounded annually. Calculate the present, future, and equivalent annual cost (end of years 1-3) for providing service with this asset over the three-year life

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