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Nothing is missing, do not comment is you are unable to solve it You are calculating Equivalent Annual Cost (EAC) to evaluate replacement options. The

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You are calculating Equivalent Annual Cost (EAC) to evaluate replacement options. The following describes one of the options: Purchase cost = $14,000 Installation cost = $1,500 Useful Life = 8 years Depreciation Rate (Declining Balance) = 10%/yr O&M cost (year 1) = $1,000 Annual increase in O&M cost = 7% MARR = 5% Determine the EAC Total for the 3rd year of ownership. You are calculating Equivalent Annual Cost (EAC) to evaluate replacement options. The following describes one of the options: Purchase cost = $14,000 Installation cost = $1,500 Useful Life = 8 years Depreciation Rate (Declining Balance) = 10%/yr O&M cost (year 1) = $1,000 Annual increase in O&M cost = 7% MARR = 5% Determine the EAC Total for the 3rd year of ownership

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