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FlightFox Co. is buying a used 727 plane for $860,000 which they expect to fly for 3 years before it needs to be replaced. The727's

FlightFox Co. is buying a used 727 plane for $860,000 which they expect to fly for 3 years before it needs to be replaced. The727's annual operating cost is $10,000. If FlightFox required rate of return is 10%, what is the plane's EAC(Equivalent Annual Cost)?

(Round your answer to whole dollars)

(select one)

  • $-335,453

  • $-350,242

  • $-355,819

  • $-357,586

  • $-361,242

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