# Equivalent uniform annual cost

Please see the attached file.

Your County is planning to build a park. The initial cost for the park will amount to $6,500,000. Annual maintenance and repairs will amount to:

$25,000 for each of the first five years,

$30,000 for each of the next ten years and,

$35,000 for each of the next five years.

In addition, a major overhaul costing $500,000 will be required at the end of the tenth year.

a) Use a constant interest rate of 5% and determine the equivalent uniform annual cost for a 20-year period.

© BrainMass Inc. brainmass.com October 10, 2019, 12:34 am ad1c9bdddfhttps://brainmass.com/economics/finance/equivalent-uniform-annual-cost-example-problem-297088

#### Solution Summary

The solution explains how to calculate the equivalent uniform annual cost.

$2.19