Operating costs are expressed in actual dollars

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A capital asset has first cost of $10 000 and it depreciates at 10% rate annually. Operating costs over the next four years are given below: Year Operating costs, $/yr 1 1800 2 1600 3 3800 4 3000 Operating costs are expressed in actual dollars. Calculate EAC (operating) if real interest rate is 10% and annual inflation is 2%

Reference no: EM131165483

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