Acme labs bought a now inspection device for $20,000 The accounting department has estimated that the device would have an annualized capital cost of $4,350 over its 7-year service life What salvage value was assumed in calculating the capital cost? The firm's interest rate is known to be 15%. Auto-Rent company, located in a place with a lot of tourists, considering buying 10 new brand cars that cost $500,000, and have 10 years useful life. At the end of 10 years, the cars can be sold for $100,000 after tax adjustment. The annual O& M costs are about $10,000. If the company could earn revenue (after-tax) of $200,000 per year with these renting these cars, should these be purchased at an interest rate of 10%? How much is annual equivalence worth? Yes, $168.042 Yes, $114,920 Yes, 84,094 No, - $84.094