5.) EUAC=P(A/P, i, n) - S (A/F, i, n) - Eqtn 1 EUAC=P-S (A/F, i, n) + Pi - Eqtn 2 EUAC=P-S (A/P, I, n) + Si-Eqtn 3 EUAC (PW of cost) (A/P, i, n)- Eqtn 4 Equation 4 is used for irregular cash disbursements where PW of costs is first calculated- as shown below then substituted into equation 4. PW of costs A1 (P/F, i, 1) + A2 (P/F, i, 2) + A3 (P/F, i, 3)... An The irregular annual maintenance costs of a boiler have been recorded over the last five years. Calculate the boiler's equivalent uniform annual costs assuming an 8% interest rate Annual maintenance cost for Boiler $70 $210 $140 $350 $280 Year 1 2 3 4 5 -

Financial & Managerial Accounting
14th Edition
ISBN:9781337119207
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter19: Cost-Volume-Profit Analysis
Section: Chapter Questions
Problem 3DQ: Describe how total fixed costs and unit fixed costs behave with changes in the level of activity.
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5.) EUAC=P(A/P, i, n) - S (A/F, i, n) - Eqtn 1
EUACP-S (A/F, i, n) + Pi - Eqtn 2
EUACP-S (A/P, I, n) + Si-Eqtn 3
EUAC (PW of cost) (A/P, i, n)- Eqtn 4
Equation 4 is used for irregular cash disbursements where PW of costs is first calculated-
as shown below then substituted into equation 4.
PW of costs A1 (P/F, i, 1) + A2 (P/F, i, 2) + A3 (P/F, i, 3)... An
The irregular annual maintenance costs of a boiler have been recorded over the last five
years. Calculate the boiler's equivalent uniform annual costs assuming an 8% interest rate
Annual maintenance cost for Boiler
$70
$210
$140
Year
1
2
3
4
5
$350
$280
Transcribed Image Text:5.) EUAC=P(A/P, i, n) - S (A/F, i, n) - Eqtn 1 EUACP-S (A/F, i, n) + Pi - Eqtn 2 EUACP-S (A/P, I, n) + Si-Eqtn 3 EUAC (PW of cost) (A/P, i, n)- Eqtn 4 Equation 4 is used for irregular cash disbursements where PW of costs is first calculated- as shown below then substituted into equation 4. PW of costs A1 (P/F, i, 1) + A2 (P/F, i, 2) + A3 (P/F, i, 3)... An The irregular annual maintenance costs of a boiler have been recorded over the last five years. Calculate the boiler's equivalent uniform annual costs assuming an 8% interest rate Annual maintenance cost for Boiler $70 $210 $140 Year 1 2 3 4 5 $350 $280
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