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Please draw the cash flow diagram. Tnx 4. Compare the equivalent uniform annual cost of service for two emergency power plants. Unit A has a
Please draw the cash flow diagram. Tnx
4. Compare the equivalent uniform annual cost of service for two emergency power plants. Unit A has a first cost of $40,000, an expected life of 8 years, and no net salvage value. Annual disbursements for operation and maintenance are expected to be $1,800. Unit B has a first cost of $50,000, and expected 10 year life, and an estimated net salvage value of $5,000. Annual operation and maintenance is expected to be $1,200. If Unit B is chosen, additional annual income tax payment of $550 will be required. Use an i* of 14% after income taxes. 2. A building contractor purchased a dirt scraper for $35,000. He maintained the scraper at cost of $2,500 per year. He overhauled the machine 4 years after the purchase at a cost of $4,000. Two years after the overhaul, he sold the scraper for $18,000. What was his equivalent uniform annual cost if the interest rate was 10% per yearStep by Step Solution
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