Question
You are purchasing new 3D printing equipment that has an initial cost of $40,000. The equipment will have the annual operating and maintenance costs indicated
You are purchasing new 3D printing equipment that has an initial cost of $40,000. The equipment will have the annual operating and maintenance costs indicated in the table. Annual costs occur at the end of the year.
| Year 1 | $2,500 |
| Year 2 | $3,000 |
| Year 3 | $1,000 |
| Year 4 | $5,000 |
| Year 5 | $3,000 |
If your cost of capital is 14%, what is the equivalent annual cost of the equipment?
Enter your answer as a positive number.
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Investing All In One
Authors: Eric Tyson
1st Edition
1119376629, 978-1119376620
