What is the uniform annual equivalent value

Reference no: EM13179593

An electronic device is available that will reduce this year's labor cost by $10,000. The equipment is expected to last for 8 years.
If labor costs increase at an average rate of 7% per year and the interest rate is 12% per year:

a. What is the maximum amount that we could justify spending for the device?
b. What is the uniform annual equivalent value (A) of labor costs over the eight-year period?

Reference no: EM13179593

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