Question
A currently used machine costs $11,000 annually to run. What is the maximum that should be paid to replace the machine with one that
A currently used machine costs $11,000 annually to run. What is the maximum that should be paid to replace the machine with one that will last 3 years and will cost only $3,000 annually to run? The opportunity cost of capital is 3%. The maximum amount that should be paid is: $ Number (please round your final result to 2 decimals, but keep as many decimals as possible during calculation)
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Cost Accounting A Managerial Emphasis
Authors: Horngren, Srikant Datar, George Foster, Madhav Rajan, Christ
6th Canadian edition
978-0132893534, 9780133389401, 132893533, 133389405, 978-0133392883
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