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Your company has just signed a three-year nonrenewable contract with the city of New Orleans...

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Accounting

Your company has just signed a three-year nonrenewable contract with the city of New Orleans for earthmoving work. You are investigating the purchase of heavy construction equipment for this job.
The equipment costs $206,000 and qualifies for five-year MACRS depreciation. At the end of the three-year contract, you expect to be able to sell the equipment for $60,000. If the projected
operating expense for the equipment is $62,000 per year, what is the after-tax equivalent uniform annual cost (EUAC) of owning and operating this equipment? The effective income tax rate is 30%,
and the after-tax MARR is 11% per year.
Click the icon to view the GDS Recovery Rates (rk) for the 5-year property class.
Click the icon to view the interest and annuity table for discrete compounding when the MARR is 11% per year.
The after-tax equivalent uniform annual cost is $,(Round to the nearest dollar.)
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