Question
Jack's Angus considering the purchase of a new machine for the prediction of computers. machine. A. cost $5 million and will last for 4 years.
Jack's Angus considering the purchase of a new machine for the prediction of computers. machine. A. cost $5 million and will last for 4 years. variable costs are 20% of sales in fixed cost or a million per year. machine. B. cost $8 million and will last for 7 years. variable cost for the machine are 15% of sales and fixed cost or $1,250,000 per year. The sales for each machine will be 4 million per year. The required rate of return is 7%, the tax rate is 21%, and both machines will be depreciated using straight line with no salvage value. calculate the equivalent annual annuity for machine A
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