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Lucas Construction just purchased a new track hoe attachment costing $12,500. The CFO, Mr. Cameron Lucas, expects the implement will be used for five years
Lucas Construction just purchased a new track hoe attachment costing $12,500. The CFO, Mr. Cameron Lucas, expects the implement will be used for five years when it is estimated to have a salvage value of $4,000. Maintenance costs are estimated to be $500 the first year and will increase by $100 each year thereafter.
If a 12% interest rate is used, what is the equivalent uniform annual cost of the implement?
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