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Snowful County is building a new waste treatment plant at an initial cost of $7481583. The plant will have annual maintenance of $153130, which will increase by $61425 each subsequent year. Beginning at the end of year 11, the county will undertake a 6-year improvement project at a cost of $347191 per year. The treatment plant has a useful life of 25 years.
Calculate the equivalent uniform annual cost (EUAC) of the waste treatment plant using an interest rate of 2%, compounded annually.
Hints:
The first payment for the improvement project will be at the end of year 11.
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