Question
Assume the initial cost of one customized tool and die machine is $684,000 and costs $12,600 a year to operate. Each machine has a life
Assume the initial cost of one customized tool and die machine is $684,000 and costs $12,600 a year to operate. Each machine has a life of three years before it is replaced. Ignore taxes. What is the equivalent annual cost of this machine if the required return is 14 percent?
| a | $237,750.85 |
| b | $268,411.15 |
| c | $307,220.33 |
| d | $240,600.00 |
| e | $289,038.11 |
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Equity Valuation And Portfolio Management
Authors: Frank J. Fabozzi, Harry M. Markowitz
1st Edition
047092991X, 9780470929919
