Compute the equivalent uniform annual worth

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Reference no: EM133378617

Question: 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 $5,000 after 7 years. The maintenance cost will be $1,400 each year. The firm's interest rate is 7% per year. Compute the Equivalent Uniform Annual Worth (EUAW).

EUAW = EUAB - EUAC

Reference no: EM133378617

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