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 equipment for this job. The equipment cost $198,000 and qualifies for five-year MACRS depreciation. At the end of the three-year contract, you expect to be able to sell the equipment for $63,000. If the projected operating expense for the equipment is $69,000 per year, what is the after-tax equivalent uniform annual cost (EUAC) of owning and operating this equipment? The effective income tax rate is 24%, and the after-tax MARR is 14% per year.

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The after-tax equivalent uniform annual cost is $____(Round to the nearest dollar.)

\begin{tabular}{cc} \hline \multicolumn{2}{c}{ GDS Recovery Rates (rk)} \\ \hline Year & 5-year Property Class \\ \hline 1 & 0.2000 \\ 2 & 0.3200 \\ 3 & 0.1920 \\ 4 & 0.1152 \\ 5 & 0.1152 \\ 6 & 0.0576 \\ \hline \end{tabular}