Engineering Board Exam Reviewer · Equivalent Uniform Annual Cost · medium
Machine Y costs P120,000, lasts 6 years, has a salvage value of P20,000, and annual operating costs of P8,000. Find its equivalent uniform annual cost at 10% interest.
- P35,552.89
- P30,960.74
- P32,960.74
- P24,960.74
Answer
C. P32,960.74
Solution
EUAC=(P-S)(A/P,i,n)+Si+O=100,000(0.229607)+20,000(0.10)+8,000=P32,960.74.
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