Homework Answers
Present worth of O&M cost = 8000 * (P/F, 8%,1) + 7500 * (P/F, 8%,2) + 7000 * (P/F, 8%,3) + 6500 * (P/F, 8%,4) + 6000 * (P/F, 8%,5) + 9500 * (P/F, 8%,6)
= 8000 * 0.925926 + 7500 * 0.857339 + 7000 * 0.793832 + 6500 *0.735030 + 6000 *0.680583 + 9500*0.630170
= 34242.08
EUAC = 34242.08 * (A/P, 8%,6) = 34242.08 * 0.216315 = 7407.10
Option C is the correct answer
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