A new computer costs $4 000. It depreciates at 15% annually. The computer maintenance costs are $200 in the first year increasing by 50% per year thereafter. Calculate the EAC over the first five years of the computer's life, assuming a 20% interest rate. What is the economic life of the computer?

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The Answer of A new computer costs $4 000. It depreciates at 15% annually. The computer maintenance costs are $200 in the first year increasing by 50% per year thereafter. Calculate the EAC over the first five years of the computer's life, assuming a 20% interest rate. What is the economic life of the computer?

A New Computer Costs $4 000