Determine the most economical equipment life

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Reference no: EM131523926

A general contractor is interested in buying new construction equipment for grading with a purchase price of $139,000 without a salvage price. The annual gain is $31,000 with an arithmetic increase of $2,000 starting the 2nd year. Determine the most economical equipment life to minimize the EUAC (Equivalent Uniform Annual Cost).

Reference no: EM131523926

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