Compute the equivalent uniform annual cost during the 4


An electronics firm invested $60000 in a precision inspection device. It cost $4000 to operate and maintain in the first year and $3000 in each later year. At the end of 4 years, the firm changed their inspection procedure, eliminating the need for the device. The purchasing agent was very fortunate to sell the inspection device for $60000, the original price. Compute the equivalent uniform annual cost during the 4 years the device was used. Assume interest at 10% per year.

Please select all possible answers. (multiple answer question)

A. EUAC = $60000(A/P, 10%, 4) - $60000(A/F, 10%, 4) + $3000 + $1000(P/F, 10%, 1)(A/P, 10%, 4)=$9287

B. EUAC = $60000(0.1) + $3000 + $1000(F/P, 10%, 3)(A/F, 10%, 4)=$9287

C. EUAC = $60000(0.1) + $3000 + $1000(P/F, 10%, 1)(A/P, 10%, 4)=$9287

D. EUAC = [$60000 + $4000(P/F, 10%, 1) + $3000(P/F, 10%, 2) + $3000(P/F, 10%, 3) - $57000(P/F, 10%, 4)](A/P, 10%, 4)=$9287

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Financial Management: Compute the equivalent uniform annual cost during the 4
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