A vehicle has a first cost of $25,000. Its market value declines by 15% annually. It...

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A vehicle has a first cost of $25,000. Its market value declinesby 15% annually. It is used by a firm that estimates the effect ofolder vehicles on the firm’s image. A new car has no “image cost.”But the image cost of older vehicles climbs by $800 per year. Thefirm’s MARR is 10%. Find the minimum EUAC for this vehicle and itseconomic life.
First year EUAC = $5450*************

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Transcribed Image Text

A vehicle has a first cost of $25,000. Its market value declinesby 15% annually. It is used by a firm that estimates the effect ofolder vehicles on the firm’s image. A new car has no “image cost.”But the image cost of older vehicles climbs by $800 per year. Thefirm’s MARR is 10%. Find the minimum EUAC for this vehicle and itseconomic life.First year EUAC = $5450*************