## Answers

Initial Cost | 7500 |

Salvage Value | 500 |

PV @ 5% for 10th Year | 0.6139133 |

PV of Salvage Value | 306.95663 |

Annual Maintenance Cost | 500 |

Annual Pump Operation Cost | 5500 |

Total Annual Cost | 6000 |

PVIFA @ 5% for 10 Years | 7.7217 |

PV of Annual Costs | 46,330.41 |

Present Value on net Cost (A)-(B)+(C) | 53,523.45 |

PVIFA @ 5% for 10 Years | 7.7217 |

equivalent uniform annual cost | 6,931.53 |

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