The maintenance foreman of a plant in reviewing his records, Microeconomics

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The maintenance foreman of a plant in reviewing his records

The maintenance foreman of a plant in reviewing his records found that maintenance costs on a large press had increased with sales of a product that will decline in the future.

5 Years Ago $600

4 Years Ago $700

3 Years Ago $800

2 Years Ago $900

Last Year $1000

He believes that maintenance will be $900 this year and will decrease by $100 yearly for 4 years. What will be the equivalent uniform annual maintenance cost for the 10-year period? Assume interest is at 8%.

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