Question
A machine costs $33,000 and will cost $19,000 a year to operate and maintain. If the discount rate is 10.1% and the machine will last
A machine costs $33,000 and will cost $19,000 a year to operate and maintain. If the discount rate is 10.1% and the machine will last for 5 years, what is the equivalent annual cost of the machine?
a. $33,852
b. $33,273
c. $27,728
d. $23,106
e. $25,600
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Elements Of Financial Risk Management
Authors: Peter Christoffersen
2nd Edition
0128102357, 9780128102350
