# (Refer to Problem 13.17.) Find the EAC in year-0 dollars after taxes for a computer that costs…

(Refer to Problem 13.17.) Find the EAC in year-0 dollars after taxes for a computer that costs $15,000 to purchase and $3500 per year to run with a 0% differential inflation rate and has a salvage value of $1000 in year-0 dollars at the end of year 7. Inflation is expected to be 5% per year. Profits exceed $20 million per year, and the company is purchasing $850,000 worth of capital assets this year. The company uses an interest rate of 12%.