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Some equipment costs $230,000. The salvage value is estimated as $15,000, the equipment's life is nine years, and the desired ROI is 15%. Determine the
Some equipment costs $230,000. The salvage value is estimated as $15,000, the equipment's life is nine years, and the desired ROI is 15%. Determine the annual cost of the equipment. Calculate the annual depreciation for the equipment. Why is the difference between the depreciation amount and the annual cost important? Use straight-line method.
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