A company currently spends 7034 on operating and maintenance

A company currently spends $7,034 on operating and maintenance costs per year. They expect these cost to increase by $1,833 for the next 13 years. What is the equivalent ansual cost of these O & M costs if the MARR is 107%?

Solution

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		A	B	C	D	E	F	G	H	I	J	K	L	M	N
		0	1	2	3	4	5	6	7	8	9	10	11	12	13
1	O & M costs	7034	8867	10700	12533	14366	16199	18032	19865	21698	23531	25364	27197	29030	30863
2	MARR	10.70%
3	NPV	$118,759.35	NPV(A2,A1:N1)
	Equivalent annual cost	17329.70	r* NPV/(1-(1+r)^-n)	n=13