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A tower crane has the following costs, and can be sold to a salvage yard at the end of its useful life of 12 years.

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A tower crane has the following costs, and can be sold to a salvage yard at the end of its useful life of 12 years. What are the maintenance costs in year six? What is the equivalent uniform annual cost (EUAC) of the crane using an annual interest rate of 10%? 7. Initial cost Annual operating costs Annual maintenance costs Salvage value $140,000 20,000 $10,000 in year 1, increasingby 10% year after that 15,000 at the end of year 12

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