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As an example, let's assume that the city of Columbia has purchased a bus for $120,000. The projected maintenance cost and salvage value of the
As an example, let's assume that the city of Columbia has purchased a bus for $120,000. The projected maintenance cost and salvage value of the bus is known from prior experience with this model of bus (given below) Find the present worth (EUAC). Assume an interest rate of 8%. Must show the calculations step by step clearly Make a graph EUAC vs. Year, and determine the best time to replace a bus (present your reason based on your result) Year 1 2 3 4 Maintain cost ($) Salvage Value () 35,000 38,000 43,000 50,000 65,000 60,000 55,000 45,000 25,000 15,000
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