Compute the equivalent uniform annual cost

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Reference no: EM13702353

Jacky Brown, a maintenance manager of a local plant in reviewing the maintenance records of production equipment, has compiled the following maintenance cost data: 5 years ago $500; 4 years ago $ 600; 3 years ago $700; 2 years ago $800; and Last year $900. After consulting with an equipment specialist, she has compiled the maintenance cost data for the current year and the next four years. She figures that the maintenance cost this year will be $1,150 and will increase at the rate of $250 each year. Assuming an interest rate of 10 %, compute the equivalent uniform annual cost.

Reference no: EM13702353

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