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A generator costs $150 and requires $80 in maintenance for each year of its 3 year...

A generator costs $150 and requires $80 in maintenance for each year of its 3 year life. After 3 years this generator will be replaced by a new one. The generator is straight-line depreciable to zero and has no salvage value. Assume a tax rate of 35 percent and a discount rate of 15 percent. What is the Equivalent Annual Cost (EAC) of the generator? –$ 44.67 –$ 100.20 –$ 154.51 –$ 200.25 –$ 228.77

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