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Hybrid Golf Corp is considering a new milling machine for the production of their new Golf Club Line. The upfront cost is $120,000 and lasts
Hybrid Golf Corp is considering a new milling machine for the production of their new Golf Club Line. The upfront cost is $120,000 and lasts about 7 years before it needs to be replaced. The annual operating cost is expected to be $75,000. What is the equivalent annual cost of an oven if the required rate of return is 10 percent? (assume no depreciation and assume all costs are after-tax).
Multiple Choice
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$76,432.0
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$165,993.0
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$82,800.2
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$99,648.70
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87,912.90
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