What is the EUAC for the operating budget

Reference no: EM13684385

A transportation engineer received a request to install dynamic traffic signals to replace static vehicle control devices at an intersection. The engineer should prepare an estimate of an operating budget for a ten year period, if the signals were installed. The initial cost of the signals is $35,000 and the installation costs are $12,000. The estimated energy cost to operate the signals for the first year is $1,000. The energy cost is expected to increase uniformly each year by 1.5% of the first year's energy cost. Suppose an interest rate of 8 percent what is the EUAC for the operating budget? Salvage value at the end of the ten year period is negligible.

Reference no: EM13684385

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