Engineering Economics Question: Uniform series present worth question

Question

The cost of a fence that can detect poacher intrusion into a National Wildlife Preserve is $3.3 million per mile. If the effective life of the fence is 10 years, determine the equivalent annual cost of a/an 13-mile long fence at an interest rate of 5% per year.

Answer 1

$$\small EAC_{\text{per 13 miles}}=13\cdot EAC_{\text{per mile}}=13\cdot P\cdot(A/P, 5\%, 10)=13\cdot 3,300,000\cdot 0.1295 \,\$=5,555,550\$ $$