Question
9. You are purchasing new 3D printing equipment that has an initial cost of $39,000. The equipment will have the annual operating and maintenance costs
9. You are purchasing new 3D printing equipment that has an initial cost of $39,000. The equipment will have the annual operating and maintenance costs indicated in the table. Annual costs occur at the end of the year.
| Year 1 | $2,500 |
| Year 2 | $3,000 |
| Year 3 | $1,000 |
| Year 4 | $5,000 |
| Year 5 | $3,000 |
If your cost of capital is 14%, what is the equivalent annual cost of the equipment?
10. What is the present value of a perpetuity that pays $5,000 per year if the cost of capital is 5.6%? Assume payments occur at the end of the year.
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Managerial Accounting
Authors: Ray Garrison, Theresa Libby, Alan Webb
9th canadian edition
1259269477, 978-1259269479, 978-1259024900
