Engineering Board Exam Reviewer · Equivalent Uniform Annual Cost · medium
A vehicle costs P1,200,000 and is sold after 5 years for P400,000. Maintenance is P50,000 per year and fuel and other costs are P150,000 per year. Find the equivalent uniform annual cost at 8% interest.
- P500,547.75
- P400,365.16
- P360,000
- P432,365.16
Answer
D. P432,365.16
Solution
EUAC=(1,200,000-400,000)(A/P,8%,5)+400,000(0.08)+50,000+150,000=800,000(0.250456)+32,000+200,000=P432,365.16.
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