Equivalent Uniform Annual Cost (EUAC)
EUAC converts costs to an equivalent annual cost for comparison.
$$EUAC=FC(i)+\frac{(FC-SV)i}{(1+i)^n-1}+OC$$
EUAC converts costs to an equivalent annual cost for comparison.
A printing machine costs P400,000, has 10-year life, no salvage value, 10% interest, and P100,000 yearly operating cost. Compute EUAC.
Final answer: P165,098.16.
A dump truck costs P800,000, rents for P1,189 per day, salvage P100,000 after 5 years, annual maintenance P20,000, and money is worth 14%. Find days/year to warrant purchase.
Final answer: 200 days per year.
Bridge maintenance over 20 years occurs as P1,000 at year 5, P2,000 at year 10, and P3,000 at year 15. At 10%, find equivalent uniform annual cost.
The equivalent present worth is about P2,110.
Final answer: about P248 per year.