Suppose That Operating Costs Associated with the 5-Year Service Life

Multiple Choice

Suppose that operating costs associated with the 5-year service life of an asset start with $1 000 in the first year increasing by $500 thereafter. Calculate the EAC(Operating) if annual rate is 10%.

A) $1 505
B) $1 905
C) $2 005
D) $2 105
E) $2 205