An electronic firm invested $60,000 in a precision inspection device. it cost $4000 to operate and maintain in the first year and $3000 in each later year. at the end of 4 years, the firm changed their inspection procedure, eliminating the need for the device. the purchasing agent was very fortunate to sell the inspection device for $60,000, the original price. compute the equivalent uniform annual cost during 4 years the device was used. assume the interest rate 10% per year.

$9,287.63

Explanation:

Data provided in the question:

Amount invested = $60,000

Operating cost for the first year = $4000

Operating and maintaining cost after 1 year = $3,000

Selling price  = $60,000

Now,

Amount paid extra in the year 1 =  $4,000 - $3,000

= $1,000

EUAC ($)

= $60,000 × A/P(10%, 4) + $3,000 + $1,000 × P/F(10%, 1) × A/P(10%, 4) - [ $60,000 × P/F(10%, 4) × A/P(10%, 4) ]

= [ $60,000 × 0.3155 + 3,000 + 1,000 × 0.9091 × 0.3155 ] - [ 60,000 × 0.6830 × 0.3155  ]

= [ $18,930 + $3,000 + $286.82 ] - [ $12,929.19 ]

= $9,287.63

answer(d) the growth of consumption is likely to remain sluggish even as the economy begins to recover.;