FE Exam Eng. Economics - Equivalent Uniform Annual Cost (A)

In this FE exam practice problem, I calculate the annual cost given the present cost, maintenance cost, and salvage value.
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I also identify the outflows and inflows. Finally, I draw the cash flow diagram to solve the problem.

This problem is important if you are taking the FE civil, mechanical, other disciplines or if you are just taking Eng. Economics class. I also go over some very important concepts that will help you understand the equations better, so make sure you watch to the end of the video!

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