WITH DETAILED STEPS PLEASE

An aerospace subcontractor of NASA plans to provide software and hardware equipment for a wind tunnel testing facility in Johnson Space center in Huston, TX. At the initial cost of $210,000, the companys investment strategy is to deliver requirements for the first 8 years. At the beginning of year 9, another $175,000 of cost investment will be required to guarantee the operations in the subsequent years indefinitely. Instrumentation and software are at the cost of $20,000 and should be updated every 18 years. Operating costs are estimated at $4,200 a year for the first 8 years and $5800 there after. At the beginning of year 13, the operating cost is expected to increase by $300 a year.

Calculate the equivalent annual cost. Use 10% interest rate.