Question
A certain machine has the estimates shown below: Machine First Cost ($) -20,000 Annual operating cost ($/ year) -10,000 Salvage value ($) 4,000 Life (years)
A certain machine has the estimates shown below:
| Machine | |
| First Cost ($) | -20,000 |
| Annual operating cost ($/ year) | -10,000 |
| Salvage value ($) | 4,000 |
| Life (years) | 10 |
At an interest rate of 10% per year, the annual worth of this machine is equal to:
Question 10 options:
| -$13,004 | |
| -$13,254 | |
| -$12,658 | |
| -$15,270 |
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Issues In Management Accounting
Authors: Trevor Hopper, Robert W. Scapens, Deryl Northcott
3rd Edition
0273702572, 978-0273702573
