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A new equipment is being considered at a local company at a cost of $ 2 0 0 , 0 0 0 . The operation
A new equipment is being considered at a local company at a cost of $ The operation and maintenance costs of this equipment are estimated to be about $ per year. Salvage value is expected to be $ at the end of its useful life. The life of this equipment is estimated to vary anywhere from to years with the associated probabilities as shown in the table below. If an interest rate of is used, what is the expected EUAC for this equipment?
tableLife Years,Probability
$
$
$
$
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