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The O & M Cost of an Equipment Is Given

Question 2

Multiple Choice

The O & M cost of an equipment is given in the table below. Determine the EUAC of this equipment in year 6.
Assume a MARR of 8%.
 Year 123456 O& M Cost $8,0007,500$6,000$5,500$4,5008,000\begin{array} { | l | l | l | l | l | l | l | } \hline \text { Year } & 1 & 2 & 3 & 4 & 5 & 6 \\\hline \text { O\& M Cost } & \$ 8,000 & 7,500 & \$ 6,000 & \$ 5,500 & \$ 4,500 & 8,000 \\\hline\end{array}


A) $8,188.45
B) $9,149.87
C) 7,407.20
D) $7,168.52

Correct Answer:

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