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Megan s buying an Excavator for her new construction firm. The cost to buy the equipment is $250,000. Annual O&M costs are $15,000/yr. They increase

Megan s buying an Excavator for her new construction firm. The cost to buy the equipment is $250,000. Annual O&M costs are $15,000/yr. They increase $2500 per year starting in year 5. She keeps the equipment for 10 years, then sells it to Ashley for $50,000. What is the life cycle cost (present worth) of the excavator if the interest rate is 5%.

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