Required information
A company that manufactures magnetic flow meters expects to undertake a project that will have the cash flows
estimated.
First cost, $
-890,000
Equipment replacement cost in
-300,000
year 2, $
Annual operating cost, $/year
-940,000
250,000
4
Salvage value, $
Life, years
At an Interest rate of 10% per year, what is the equivalent annual cost of the project? Find the AW value using tabulated factor
The equivalent annual cost of the project is $-[
