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A corporate jet costs $1,350,000 and will incur $200,000 per year in fixed cost (maintenance, …)...

A corporate jet costs $1,350,000 and will incur $200,000 per year in fixed cost (maintenance, …) and $277 per hour variable cost (fuel, …). The jet will be operated 1200 hours per year for 5 years and then sold for $650,000. The jet revenues $1,000 per hour. The MARR is 15% per year.

Determine the Equivalent Uniform Annual Cost (EUAC) of the jet.

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