Basics Of Engineering Economy
Basics Of Engineering Economy
2nd Edition
ISBN: 9780073376356
Author: Leland Blank, Anthony Tarquin
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 3, Problem 59P

The initial cost of a pulverized coal cyclone furnace is $800,000. If the operating cost is $90,000 in year 1, $92,700 in year 2, and amounts increasing by 3% each year through a 10-year amortization period, what is the equivalent annual cost of the furnace at an interest rate of 1% per month?

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