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Your company has just signed a three-year nonrenewable contract with the city of New Orleans for earthmoving work. You are investigating the purchase of heavy

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Your company has just signed a three-year nonrenewable contract with the city of New Orleans for earthmoving work. You are investigating the purchase of heavy construction equipement for this job. The equipment costs $203,000 and qualises for five-year MACRS depreciation. At the end of the three-year contract, you expect to be able to sell the equipment for $72,000. If the projected operating expense for the equipment is $64,000 per year, what is the atter-tax equivalent uniform annual cost (EUAC) of owning and operating this equipment? The effective income tax rate is 23\%, and the after-tax MARR is 14\% per year. Click the icon to viow the GDS Recovery Rates (rh for the 5 -year property class, Click the icon to view the interest and annuity table for discrete compounding when the MARR is 14% per year. The after-tax equivalent uniform annual cost is 4 (Round to the nearest dollar.)

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