Final answer:
To find the EUAW of a $1,851 capital expenditure with an annual return of $17,328 over 13 years at a TVOM of 10%, calculate the annuity equivalent of both the expenditure and the annual return, and subtract the former from the latter.
Step-by-step explanation:
To calculate the Equivalent Uniform Annual Worth (EUAW), we need to find the annual equivalent of both the capital expenditure and the annual revenue from the investment, taking into account the Time Value Of Money (TVOM) at 10% over a period of 13 years. The annual capital cost can be calculated using the present worth of an annuity formula:
A = P \times \frac{i}{(1-(1+i)^{-n})}
Where, A is the annual payment, P is the present value, i is the interest rate per period, and n is the number of periods.
In this case, we can calculate the annual cost equivalent of the $1,851 investment and then subtract this amount from the annual return of $17,328 to get the EUAW. Using a financial calculator or software would be the most efficient way to calculate these values precisely.
The calculation would involve finding the annuity factor at 10% for 13 years and applying it to both the capital expenditure and the annual return. The difference between the two results would give us the EUAW for the investment. In other words, it would indicate the consistent annual worth of this investment over the 13-year period.