The real cost of capital is 7 and the college pays no taxes
Air conditioning for a college dormitory will cost $2.7 million to install and $140,000 per year to operate. The system should last 13 years. The real cost of capital is 7%, and the college pays no taxes. What is the equivalent annual cost?
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air conditioning for a college dormitory will cost 27 million to install and 140000 per year to operate the system
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