Question
Scholastic Co. is evaluating different equipment. Machine A hasan initial cost of $225,000 and has a five-year life, and costs $55,000 per year to operate.
Scholastic Co. is evaluating different equipment. Machine A hasan initial cost of $225,000 and has a five-year life, and costs $55,000 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 $0 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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Financial Analysis with Microsoft Excel
Authors: Timothy R. Mayes, Todd M. Shank
7th edition
1285432274, 978-1305535596, 1305535596, 978-1285432274
