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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 $200,000. The operation and maintenance costs of this equipment are estimated to be about $20,000 per year. Salvage value is expected to be $40,000 at the end of its useful life. The life of this equipment is estimated to vary anywhere from 5 to 9 years with the associated probabilities as shown in the table below. If an interest rate of 10% is used, what is the expected EUAC for this equipment?
\table[[Life, Years,5,6,7,8,9],[Probability,0.3,0.1,0.15,0.2,0.25]]
$66,460
$55,970
$62,960
$58,206.2
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