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Scholastic Co. is evaluating different equipment. Machine A costs $85,000 has a four-year life, and costs $45,000 per year to operate. The machine will be
Scholastic Co. is evaluating different equipment. Machine A costs $85,000 has a four-year life, and costs $45,000 per year to operate. The machine will be depreciated using straight-line and the relevant discount rate is 8%. The machine will have a salvage value of $20,000 at the end of the project's life. The firm has a tax rate of 21%. Calculate the EAC for the project. (Enter a positive value and round to 2 decimals)
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