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A factory purchased a new CNC machine for $150,000. The machine will have a salvage of $142,500 in the first year and for subsequent years
A factory purchased a new CNC machine for $150,000. The machine will have a salvage of $142,500 in the first year and for subsequent years the salvage value will decrease by 5% from the previous year. The factory will use the CNC machine for 6 years and at the end of the 6th year the factory will sell the CNC machine. If the interest rate is 10%, what is the annual capital cost of the CNC machine? $17,417 $20,150 0 $16,441 O $27,039
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