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A furniture manufacturer is planning on buying a new industrial sander costing $118,000. The sander has projected maintenance costs of $16,000 annually over the three-year
A furniture manufacturer is planning on buying a new industrial sander costing $118,000. The sander has projected maintenance costs of $16,000 annually over the three-year life of the sander. At the end of the three years, the sander will be worthless and will be scrapped. The company has a 34% tax rate, a 16% discount rate, and uses straight-line depreciation over the life of a project. What is the equivalent annual cost?
answer is $52,254
can you please show steps and formulas. im using a ba ii plus financial calculator. thank you
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