The initial cost for a plasma cutter is $12,000. It is anticipated that its market value at the end of any year will be 18% less than its market value at the end of that year. In other words, its market value is reduced by 18% each year. The repair costs are covered by the warranty in Year 1. However, the repair cost in Year 2 is $500 and increases by $500 each year. This company has an MARR of 15%.

What is the minimum EUAC (to the closest dollar) of this plasma cutter?