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Teldar Paper is required by the EPA to employ an air quality filter. You are evaluating several options one of which has an N
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Answer #1

Equivalent annual cost (EAC):

= NPV/PVIFA(r,n)

= -$86,810/PVIFA(17%,3)

= -86810/2.2096

= $39,288

Hence, Equivalent annual cost (EAC) is $39,288

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