The cost of a fence that can detect poacher intrusion into a National Wildlife Preserve is $3.3 million per mile. If the effective life of the fence is 10 years, determine the equivalent annual cost of a/an 13-mile long fence at an interest rate of 5% per year.
Asked
Active
Viewed 76 times
-1
-
What have you tried? Alternatively, what is the context behind this problem; where did you find it, and what relevant knowledge do you have? – Christian E. Ramirez Jan 26 '23 at 01:13
1 Answers
0
$$\small EAC_{\text{per 13 miles}}=13\cdot EAC_{\text{per mile}}=13\cdot P\cdot(A/P, 5\%, 10)=13\cdot 3,300,000\cdot 0.1295 \,\$=5,555,550\$ $$
alexjo
- 14,976