Question
T.H.E.B. Team is a company founded by four of our department's students with the aim of capturing and training Pokemons. T.H.E.B. Team has purchased a
T.H.E.B. Team is a company founded by four of our department's students with the aim of capturing and training Pokemons. T.H.E.B. Team has purchased a Rocket for 8,000 to use in their Pokemon capturing business. The Rocket is being depreciated with a straight line depreciation schedule of four years. The market value of the rocket drops 20% every year. The rocket has an annual O&M cost which is 3,000 in year 1 and which increases by 10% every year. If the annual income tax of T.H.E.B. is 40% and the annual after-tax MARR of T.H.E.B. Team is 7%, what is the EUAC of the rocket in its economic life?
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