Annual Cost

a)

Springfield is planning to build a new water treatment facility. The first cost of the facility will be $854036. Annual maintenance and repairs will be $19545 for each of the first 5 years, increase to $35739 for each of the next 10 years, and increase again to $60385 for each of the next 5 years. Springfield is also planning for a major overhaul at the end of 10 years which is estimated to cost $185054 and another minor overhaul at the end of 17 years which is estimated to cost $28777. Using an interest rate of 2.5%, what is the equivalent uniform annual cost (EUAC) for this system?

b)

Trixie is considering buying a new car at a cost of $13512. She is planning to keep the car for five years and is hoping the car will sell for $5395 at the end of year 5. She estimates that insurance, fees, maintenance, and gas will be $633 in year 1 and will gradually increase every year by $105. What is the equivalent uniform annual worth (EUAW) of this car at a 2% interest rate?

Enter your answer as 1234

Round your answer. Do not use a dollar sign ("$"), any commas (","), or a decimal point (".").