A new office building has been constructed at a cost of$3,000,000. It is estimated...

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Accounting

A new office building has been constructed at a cost of$3,000,000. It is estimated to have a life of 50 years with a valueat that time of $200,000. It will have maintenance costs of $10,000per year. It will also have major repairs costing $80,000 thatoccur at years 10, 20, 30 and 40. It will have additional repairsat the end of year 25 costing $250,000. Determine the equivalentuniform annual cost if the rate of interest of the firm is 7%

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In: AccountingA new office building has been constructed at a cost of$3,000,000. It is estimated to...A new office building has been constructed at a cost of$3,000,000. It is estimated to have a life of 50 years with a valueat that time of $200,000. It will have maintenance costs of $10,000per year. It will also have major repairs costing $80,000 thatoccur at years 10, 20, 30 and 40. It will have additional repairsat the end of year 25 costing $250,000. Determine the equivalentuniform annual cost if the rate of interest of the firm is 7%