Compute the equivalent uniform annual cost

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Reference no: EM131999764

A construction firm needs a new small loader. It can be purchased for $20,000. The firm expects the loader to have a salvage value of $3,000 after 7 years. The maintenance cost will be $1,400 each year. The firm's interest rate is 4.0% per year. Compute the Equivalent Uniform Annual Cost (EUAC).

Reference no: EM131999764

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