"padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;background-color:transparent;font-size:small;"

class="vtbegenerated inlineVtbegenerated">Champion Bakers uses

specialized ovens to bake its bread. One oven costs $689,000 and

lasts about 4 years before it needs to be replaced. The annual

after tax operating cost per over is $41,000. What is the

equivalent annual cost of an oven if the required rate of return is

13 percent?

Answer

"margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;border-top-width:0px;border-right-width:0px;border-bottom-width:0px;border-left-width:0px;font-weight:inherit;font-style:inherit;font-family:inherit;font-size:12px;color:rgb(46,107,48);text-decoration:underline;">

"margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font-weight:inherit;font-style:inherit;font-family:inherit;font-size:12px;border-collapse:collapse;">"margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font-weight:inherit;font-style:inherit;font-family:inherit;font-size:12px;">"margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font-weight:inherit;font-style:inherit;font-family:inherit;font-size:12px;">

"margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font-weight:inherit;font-style:inherit;font-family:inherit;font-size:12px;text-align:left;">

"margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font-weight:inherit;font-style:inherit;font-family:inherit;font-size:12px;text-align:left;">

"margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font-weight:inherit;font-style:inherit;font-family:inherit;font-size:12px;text-align:left;">

"padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;background-color:transparent;font-size:small;">

$272,638

"margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font-weight:inherit;font-style:inherit;font-family:inherit;font-size:12px;">

"margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font-weight:inherit;font-style:inherit;font-family:inherit;font-size:12px;text-align:left;">

"margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font-weight:inherit;font-style:inherit;font-family:inherit;font-size:12px;text-align:left;">

"margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font-weight:inherit;font-style:inherit;font-family:inherit;font-size:12px;text-align:left;">

"padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;background-color:transparent;font-size:small;">

$248,313

"margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font-weight:inherit;font-style:inherit;font-family:inherit;font-size:12px;">

"margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font-weight:inherit;font-style:inherit;font-family:inherit;font-size:12px;text-align:left;">

"margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font-weight:inherit;font-style:inherit;font-family:inherit;font-size:12px;text-align:left;">

"margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font-weight:inherit;font-style:inherit;font-family:inherit;font-size:12px;text-align:left;">

"padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;background-color:transparent;font-size:small;">

$232,407

"margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font-weight:inherit;font-style:inherit;font-family:inherit;font-size:12px;">

"margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font-weight:inherit;font-style:inherit;font-family:inherit;font-size:12px;text-align:left;">

"margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font-weight:inherit;font-style:inherit;font-family:inherit;font-size:12px;text-align:left;">

"margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font-weight:inherit;font-style:inherit;font-family:inherit;font-size:12px;text-align:left;">

"padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;background-color:transparent;font-size:small;">

$200,561

"margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font-weight:inherit;font-style:inherit;font-family:inherit;font-size:12px;">

"margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font-weight:inherit;font-style:inherit;font-family:inherit;font-size:12px;text-align:left;">

"margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font-weight:inherit;font-style:inherit;font-family:inherit;font-size:12px;text-align:left;">

"margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font-weight:inherit;font-style:inherit;font-family:inherit;font-size:12px;text-align:left;">

"padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;background-color:transparent;font-size:small;">

$196,210