Question
A company buys a color printer that will cost $1,500 to buy, and last 5 years. It is assumed that it will require servicing cost
A company buys a color printer that will cost $1,500 to buy, and last 5 years. It is assumed that it will require servicing cost of $200 each year. What is the equivalent annual annuity of this deal, given a cost of capital of 8%?
| A. | -$606.34 | |
| B. | -$575.68 | |
| C. | -$488.03 | |
| D. | -$425.07 |
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Financial Markets And Institutions
Authors: Frederic S. Mishkin, Stanley Eakins
6th Edition
0321374215, 9780321374219
