You are considering purchase of a new furnace. Its initial cost, including installation, is $3 000, and it will cost $200 a year in fuel over its 10-year life. You expect that it can then be sold for $300. If your MARR is 10%, what is the equivalent annual cost of owning the furnace?
A)$469
B)$569
C)$669
D)$769
E)$869

Question

Quizplus · Accepted Answer

The Answer of You are considering purchase of a new furnace. Its initial cost, including installation, is $3 000, and it will cost $200 a year in fuel over its 10-year life. You expect that it can then be sold for $300. If your MARR is 10%, what is the equivalent annual cost of owning the furnace?
A)$469
B)$569
C)$669
D)$769
E)$869

You Are Considering Purchase of a New Furnace